FTSE 100 Technical Outlook Improves, Big Resistance Again Targeted
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FTSE 100 Technical Highlights:
- FTSE trying to power higher again after yesterday’s burst
- Jan high at 6903 the next level, but the area around 7k the big level to watch
The FTSE 100 popped hard yesterday, rising sharply towards the January high at 6903. Should the market get to that point soon it might not be a difficult level to cross, but the area just beyond there might.
There lies multiple lows from 2019 in the vicinity of 7004 up to 7150, making it a very important spot of resistance. At that juncture we would get to see what the market is really made of, as a rise above could clear a path towards the pre-corona collapse high at 7689.
Should the FTSE struggle to trade higher, the trend-line from late October will be viewed first up as support. It isn’t the strongest trend-line given it has the bare minimum to make up a trend-line (two connecting points). But nevertheless it could act as support. From there, the low at 6397 will be important to watch.
Looking at the general tone in risk trends, probability currently favors seeing higher levels. But continue to keep an eye on other major stock markets, the U.S., Germany, Japan, for cues as to changes that may be happening on the macro-front.
From a tactical standpoint, running with a long bias unless mentioned support levels break.
FTSE Daily Chart (looking higher, test of 7k+ could be in order)
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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.