- The FTSE drawing closer to significant resistance at 7,801.6 with potentially further upside ahead
- Although higher today, the FTSE dipped below its 3 day Simple Moving Average in early trade
While the FTSE has been trading flat for 12 days, Todays session shows some improvement: the FTSE goes up to 7,786.73 after dipping down to 7,771.61 earlier.
The index has been trending positively for about a month. The FTSE hit a significant low of 6,826.2 around 3 months ago, but has since recovered 13.85%.
FTSE is 14.87 points away from testing key resistance at 7,801.6. Peaking above this level could inspire market bulls and open the path to further gains. Although up today, early price action saw the FTSE dropping below its 3 day Simple Moving Average at 7,774 — an early indicator that a new downward trend could be emerging. The FTSE's upper Bollinger Band® is at 7,876, this is a slight indication of a slowdown.
The FTSE is likely to reverse course and start pointing downward in the short term.
Fundamental indicators – United Kingdom Manufacturing PMI came out at 47, while a consensus of analysts was expecting 46.7.
Other markets are also showing gains as S&P 500 rises 1.46% to trade around 4,076.6. Dow Jones is up 1.09%. Having closed the previous session at 11,400, Nasdaq is up 1.67% today to currently trade at around 11,600.
Upcoming fundamentals: United Kingdom BoE Interest Rate Decision (Jan) is scheduled for tomorrow at 12:00 UTC.