- Price action honing in on likely support at 7,523.63
- The FTSE's upper Bollinger Band® is at 7,573.73 which indicates a further downward move may follow.
Though in the midst of a month uptrend, gaining a total of 10.73%, (746.85 points), Today's session suggests run might be coming to an end — down on the day: the FTSE closed at 7,558.49 after ranging between 7,552.29 and 7,599.7.
The index has been trending positively for about a month. The FTSE has recovered 10.94% since descending to a significant low of 6,826.2 around a month ago.
Technical analysis trend indicators suggest that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. According to momentum evaluation, 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 7,573.73 which indicates a further downward move may follow. Analysis of the FTSE's recent price action suggests the FTSE could begin to recover as it approaches significant support, now 34.86 points away from 7,523.63. Dipping below could be an indication that further losses are ahead.
Notwithstanding the FTSE's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Fundamental indicators – United Kingdom Manufacturing PMI came out at 46.5, while a consensus of analysts was expecting 46.2.
In the meantime, negative performances are also seen in other markets, after ending today's session at 34,600, Dow Jones lost 354.61 points and is trading around 34,245.
Other assets are showing positive performances as ASX 200 went up by 0.96% today, and closed at 7,354.4. Nikkei added 0.92% and closed around 27,969 today.