- The FTSE could slow down as it approaches resistance at 7,502
- Upper Bollinger Band® currently at 7,542.34
The FTSE continues a month uptrend, gaining a total of 9.68%. Yesterday's session pointed in the same direction — the FTSE spiked to 7,497.23 yesterday and consolidated before initiating a fresh rally to 7,486.67. This comes following Thursday's session in which it closed at 7,466.6.
The index has been trending positively for about a month. Having set a significant high of 7,672.4 a month ago, the FTSE is trading 9.38% lower.
The FTSE's notable support and resistance levels: FTSE could be slowing down soon; it is getting close to the resistance line and is now at 7,502, only 15.33 points away. Crossing the resistance line could, however, suggest that further gains are ahead. Technical analysis trend indicators suggest that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. According to momentum evaluation, the Relative Strength Index indicates the FTSE is currently 'overbought' which suggests new gains will be harder to obtain. Analysis based on the asset volatility indicates that the FTSE's upper Bollinger Band® is at 7,542.34, this is a slight indication of a slowdown.
Overall, while the FTSE has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Other markets are also showing gains as Dow Jones is trading around 34,347 after ending yesterday's session at 34,200 (up 0.45% today). ASX 200 added 0.24% and closed around 7,241.8 yesterday.
At the same time, Hang Seng lost 0.49% yesterday and closed at 17,661.