FTSE Technical Analysis – Back Near Confluent Resistance, Range to Persist
FTSE Technical Highlights:
- FTSE bounce has confluent resistance back in sights
- Market expected to range for the time-being
FTSE bounce has confluent resistance back in sights
The FTSE’s multi-day rally has it back near resistance by way of a couple of points, price resistance dating back to September, most recently in play last month, and the 200-day MA. This confluence in the 7260-area is seen as keeping a lid on the upside.
It’s been a month since the FTSE has made any more progress since rallying sharply off the December low. The general trading conditions are tight and will likely be so until we see what develops further out the ‘Brexit’ situation next week.
On the downside range support clocks around 7060/40, and not far below there lies the channel line off the December low, along with the possibility of also seeing that in confluence with small peak in January if the timing is right.
The overall trend is still higher since bottoming and has yet to show signs that the market wants to roll over, but momentum is lacking and uncertainty is high. For now, risk/reward is unfavorable for directional bets, and conditions are likely to favor range-fades at support and resistance.
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FTSE Daily Chart (Range conditions to persist)
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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.