- Despite dipping below 7,444 as support, market bulls are still in control
- Bollinger analysis indicates upper Band® is at 7,538.71
On a month uptrend, Yesterday's session put the brakes on the ongoing uptrend — after ending yesterday at 7,465.24, the FTSE traded in a 7,443.46 – 7,488 range before settling at 7,466.6.
The index has been trending positively for about a month. The FTSE hit a significant low of 6,826.2 around a month ago, but has since recovered 9.36%.
The FTSE chart analysis: FTSE reversed direction at 7,444 support zone and climbed 22.58 points above it. Trend and momentum analysis indicates that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Momentum evaluation shows that according to technical analysis of the FTSE's Relative Strength Index (RSI), the market is currently overbought. Analysis based on the asset volatility indicates that the FTSE's upper Bollinger Band® is at 7,538.71, suggesting that a downward move may follow.
Overall, while the FTSE has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Fundamental indicators – United Kingdom CBI Industrial Trends Orders (Nov) came out at -5, while a consensus of analysts was expecting -8.
While the FTSE was pretty flat yesterday, mixed performances were seen elsewhere as Hang Seng descends 0.86% yesterday and closed at 17,661. Nasdaq added 0.99% and closed around 11,174 yesterday. DAX is trading around 14,540 after ending yesterday's session at 14,428 (up 0.78% today).
Upcoming fundamentals: United Kingdom CFTC GBP speculative net positions will be released today at 19:30 UTC.