FTSE 100 Technical Outlook – Needs to Break the Range, Lagging Other Markets
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FTSE 100 Technical Highlights:
- FTSE stuck in a range pattern
- Lagging behind other major markets
- Top and bottom-side levels to watch
FTSE stuck in a range pattern
The FTSE has been going nowhere fast, as it continues to build on a range dating back to the middle of June. This makes getting a gauge on things a bit difficult at the moment, but with the top and bottom side of the range becoming clearer traders may be offered a breakout opportunity soon.
On the low-end of the range we have 6029/5952 as the support zone, while on the high-end of the range there is a ceiling around the 6304/6342 zone. Overall, the FTSE has been lagging other global indices the past few weeks, which suggests it is vulnerable to selling on a risk-off event.
A break of noted support will have the 5750/5660 area in focus as the next potential target. It is unclear from a broader standpoint whether a sell-off, or rally, will grow legs. The market is generally lacking any real motivation to head anywhere in a meaningful way these days. We’ll take it one step at a time.
Should we see the range get resolved on the top-side, breaking out above 6029, then look for the June high at 6511 to come in play. This level is very near the important December 2018 low at 6536. From there should price continue on higher, the falling 200-day will be next up as resistance. Currently at 6663.
For now, waiting for a range-break to run with a stronger trader bias. For those looking to play the range the aforementioned levels could be used as spots to determine fade-trades.
FTSE Daily Chart (stuck in a range)
UK 100 Index Charts by Tradingview
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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.