FTSE Chart Analysis –Weak Price Sequence off December Low
FTSE Technical Highlights:
- FTSE bounce at risk with weak overall price action
- Trend-line resistance to help assess upside
FTSE bounce at risk with weak overall price action
The FTSE’s climb off of last month’s low hasn’t been as impressive as the one seen in the U.S. markets, making the UK index a target for sellers looking to relative strength as a factor. Price action off the low isn’t showing much signs of upward momentum.
The generally overlapping price sequence (ascending wedge-like) within the context of a downtrend suggests we could see a move back towards the December low despite other global markets perhaps holding up. Furthering along a bearish bias will be a break below the 1/17 low at 6799.
A hold above the low from last week will be reason, though, to maintain a neutral short-term outlook as the trend off the low stays intact. A pop higher from here will have a trend-line from August in play along with recent daily highs.
It will require a climb above those thresholds to give life to a more meaningful push higher towards resistance around the 7200-line. For now, sitting tight, but there are technical signposts to watch as we move forward from here.
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FTSE Daily Chart (Weak-ish price action)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.