- The FTSE drawing closer to significant resistance at 7,405.7 with potentially further upside ahead
- Market bulls strengthened by lower Bollinger Band® currently at 7,364.6
While in the midst of a 13 day downtrend, Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. The FTSE has rallied 45 points, or 0.61%, to now stand at 7,377.
The FTSE hit a significant low of 6,826.2 around 2 months ago, but has since recovered 7.41%.
The MACD is significantly below its signal line which suggests that the existing bearish sentiment is beginning to swing around toward a more bullish outlook. The FTSE's lower Bollinger Band® is at 7,364.6, indicating that the market is oversold and fertile for new buyers. In contrast, the FTSE could be slowing down soon as it approaches resistance at 7,405.7. Of course, crossing it might suggest further gains are ahead.
The FTSE continues to move higher with technical analysis indicating the trend will continue in the short term.
Fundamental indicators – United Kingdom CBI Industrial Trends Orders (Dec) came out at -6, while a consensus of analysts was expecting -9.
Other markets are also showing gains as having closed the previous session at 6,452.63, CAC is up 0.51% today to currently trade at around 6,485.43.
At the same time, Nikkei slumps 1.05% to trade around 27,238. Nasdaq is down 100 points from the beginning of the session and now trades around 10,600.