- Price action oscillating around key resistance at 7,391
- The lower Bollinger Band® is currently at 6,958.46 while the higher band is at 7,502.79
27 days and 520.34 points of gains are not enough for the FTSE. This session seems to remain in the same lane for now — the FTSE closed out yesterday at 7,346.54. Today, it reached highs around 7,423.51 before dropping back to 7,411.27.
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 7.62% lower.
FTSE could be slowing down soon as it approaches resistance at 7,391. Of course, crossing it might suggest further gains are ahead. Although up today, early price action saw the FTSE dropping below its 3 day Simple Moving Average at 7,355.7 — an early indicator that a new downward trend could be emerging. Bollinger Band® analysis indicates that current price action is approaching the upper band at 7,502.79, thereby suggesting that the FTSE is becoming overvalued.
Despite basking in an uptrend and bullish intraday sentiment, chart analysis indicates the FTSE is set for a reversal in the coming days.
Fundamental indicators – United Kingdom Retail Sales beat analyst expectations of 0.3% and the previous reading of -1.5% with new data of 0.6%.
The FTSE shows positive signs, other assets are also on par: CAC is up 1.28%. EuroSTOXX increases 1.35% to trade around 3,931. DAX ascends 1.18% to trade around 14,435.
Upcoming fundamentals: United Kingdom MPC Member Haskel speech scheduled to come out today at 17:15 UTC.