- Price action backs away from resistance at 7,009.23 despite bullish mood
- Upper Bollinger Band® currently at 7,079
Keeping up its 8 days of climbing (+143.53 points), Today's session pointed in the same direction — after ending Friday at 6,969.73, the FTSE went up to 7,047.37 only to drop back, yet still traded well overall and closed at 7,014 today.
Having set a significant high of 7,672.4 12 days ago, the FTSE is trading 2.1% lower.
Despite posting gains on today, FTSE slid below its 21 day Simple Moving Average at 6,948.41 during the last session — an early indicator that a negative trend could be emerging. The FTSE's upper Bollinger Band® is at 7,079, this is a slight indication of a slowdown. Although the FTSE is appreciating today after rising as high as 7,047.37, price action is now slowing and consolidating around 4.76 points below the 7,009.23 resistance level.
After posting consistent gains as part of its uptrend and being lifted by intraday sentiment, technical factors suggest the FTSE is set for a reversal in the coming days.
Fundamental indicators – United Kingdom Manufacturing PMI came out at 45.8, while a consensus of analysts was expecting 48.
The FTSE shows positive signs, other assets are also on par: ASX 200 added 1.54% and closed around 6,676.8 today. CAC went up by 1.59% today, and closed at 6,131.36.
At the same time, after ending today's session at 16,200, Hang Seng lost 1,019.31 points and is trading around 15,181.
Upcoming fundamentals: United Kingdom CBI Industrial Trends Orders (Oct) is expected tomorrow at 10:00 UTC.