FTSE 100 Technical Outlook – Enough in the Tank for a Run to Record Highs?
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FTSE 100 Technical Highlights:
- FTSE put in a nice consolidation pattern, now breaking out
- 2019 high around the corner, ATH may become the new target
For our analysts intermediate-term fundamental and technical view on the FTSE and other major indices, check out the Q4 Global Equity Markets Forecast.
FTSE put in a nice consolidation pattern, now breaking out
The US markets have for the most part entered ‘vertical rally’ territory, while other major global markets are also demonstrating strength in varying degrees. The FTSE has been stuck consolidating the past few weeks after posting a strong end-of-year run.
That is on the verge of changing with today’s breakout (at least so far). It’s only an intra-day breakout at this juncture, still need to see a good close at minimum above 7636 before calling it confirmed. From here it’s only a short distance to the 2019 high at 7711.
There may be some type of fight at that juncture, but at some point if the global move in stocks can maintain, or at the least not abruptly reverse, then the all-time-high (ATH) from 2018 at 7903 can become a realistic target soon.
For now, if the breakout holds then so does a bullish outlook. It will require a strong turnabout and reverse lower to dent that view. The trading bias on this end still remains in the camp of buying dips vs chasing momentum as long as no key failures.
FTSE Daily Chart (Working on breakout, 2019 highs and better)
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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.