- The FTSE drawing closer to significant resistance at 7,913.57 with potentially further upside ahead
- The lower Bollinger Band® is currently at 7,702.59 while the higher band is at 7,931
The sentiment that generated 137.55 points in cumulative gains over the past 13 days was further evident for the FTSE. Consistent for now — after ending Friday at 7,882.45, the FTSE ascended as high as 7,907.78 before meeting resistance. Undeterred, the FTSE posted a fresh rally late in the trading session targeting 7,902.8.
The index has been trending positively for about a month. The FTSE hit a significant low of 6,826.2 around 4 months ago, but has since recovered 15.47%.
FTSE made an initial breakout above its 3 day Simple Moving Average at 7,893, a potential indicator of a newly emerging bullish phase. In contrast, the FTSE could be slowing down soon as it approaches resistance at 7,913.57. Of course, crossing it might suggest further gains are ahead. A "bearish engulfing" pattern — a scenario when a larger red candle engulfs a smaller green candle, at the top of a prevailing uptrend. Typically this is a signal of lower prices in the near term.
According to technical analysis, it looks as if the FTSE likely to continue pointing upward in the short term.
Other markets are also showing gains as having closed the previous session at 33,700, Dow Jones is up 0.5% today to currently trade at around 33,869.
At the same time, after ending Friday's session at 2,469.73, KOSPI Composite Index lost 17.03 points and is trading around 2,452.7. After ending Friday's session at 27,671, Nikkei lost 243.66 points and is trading around 27,427.
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