FTSE 100 Technical Outlook – Breaking Sizable Level, Looking Towards 7000
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FTSE Technical Highlights:
- FTSE trading through resistance around 6500
- A firm breakout is seen as keeping the market on pace for 7k
The FTSE 100 is currently working on leaving behind a strong level of resistance that started back when the market bottomed in 2018. Around the 6536 mark we saw a hesitation during the March decline, followed by a top in June before price just stalled ahead of it in November.
A climb above would help set the pace for a potential move up to just over 7000, where the next set of levels are that were created during 2019. It would be a strong rise from here to do by the end of the year, but a possibility if risk appetite can remain strong.
Even with that in mind, from a risk/reward perspective, buying dips may be the best way to play this should price continues to try and rise.
To derail a bullish outlook, a sharp price decline back below 6500 and really a lower-low below 6236 would be needed. For would-be shorts, waiting until bearish price action sets in may be the best course of action versus trying to predict pullbacks.
FTSE Daily Chart (rising above resistance)
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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.