- Price action is gradually approaching a key resistance hurdle at 7,009.23
- The FTSE made an initial breakout above its 21 day Simple Moving Average at 6,957.45, a potential indicator of a newly emerging bullish phase.
Maintaining its 8 days rise (+117.71 points), Yesterday's session pointed in the same direction — after dipping down to 6,864, the FTSE regained earlier losses and ended up at 6,969.73.
10 days ago, the FTSE fell to a low of 6,826.2 but has since recovered 1.72%.
The FTSE's notable support and resistance levels: FTSE could be slowing down soon; it is getting close to the resistance line and is now at 7,009.23, only 39.5 points away. Crossing the resistance line could, however, suggest that further gains are ahead. Trend-focused traders would be interested to note that the FTSE made an initial breakout above its 21 day Simple Moving Average at 6,957.45, a potential indicator of a newly emerging bullish phase. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at 7,073.55, thereby suggesting that the FTSE is becoming overvalued.
Overall, while the FTSE has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Fundamental indicators – United Kingdom Retail Sales fell short of the -0.5% projections, with new data of -1.4%.
Other markets are also showing gains as Dow Jones went up by 2.47% yesterday, and closed at 31,083. S&P 500 is trading around 3,752.75 after ending yesterday's session at 3,665.78 (up 2.37% today). Nasdaq is trading around 10,860 after ending yesterday's session at 10,600 (up 2.31% today).