- Price action honing in on likely support at 7,411
- The FTSE's upper Bollinger Band® is at 7,540 which indicates a further downward move may follow.
Though in the midst of a month uptrend, gaining a total of 9.49%, (660.47 points), The prevailing bullish trend is beginning to fade following today's downbeat session. The FTSE retained its composure around the 7,474 level after dropping 0.17%.
The index has been trending positively for about a month. The FTSE is up 9.68% from the significant low of 6,826.2 it hit a month ago.
FTSE could begin to recover as it approaches significant support, now 62.92 points away from 7,411. Dipping below could be an indication that further losses are ahead. Despite being in the red so far in the current trading session, the FTSE peaked above its 5 day Simple Moving Average around 7,449.64 — typically an early indicator of a new bullish trend beginning to emerge. In contrast, the FTSE's upper Bollinger Band® is at 7,540 which indicates a further downward move may follow.
Overall, looking at the technical analysis landscape, although technical indicators are mixed and pointing in different directions, it seems the FTSE is set to appreciate despite today's setback.
In the meantime, negative performances are also seen in other markets, Dow Jones dips 1.45% today and closed at 34,347. KOSPI Composite Index dips 1.21% today and closed at 2,438. S&P 500 lost 1.54% today and closed at 4,026.
Upcoming fundamentals: United Kingdom BoE Gov Bailey speech is scheduled tomorrow at 15:00 UTC.