Jump to content

FTSE Technical Analysis: Extending Towards Multi-year Resistance


Recommended Posts

FTSE 100 TECHNICAL HIGHLIGHTS:

  • The FTSE is nearing its pre-pandemic highs
  • Yearly highs from 2018 and 2019 lie just beyond there
FTSE Technical Analysis: Extending Towards Multi-year Resistance

The FTSE 100 is continuing its strength following a breakout above a barrier of resistance via the trend-line running off the 2018 high. The upward trajectory appears set to continue in the near-term, but big resistance lies not far ahead.

The pre-pandemic highs created in January 2020 at 7689 along with the 2019 high at 7711 makes for a tight zone of resistance that may be difficult to overcome on the first approach. Price action will be key to watch.

A reaction, i.e. a swift reversal day, could be the first indication that a correction will begin. Given the way the FTSE often times trades – three steps forward, two back – it wouldn’t be surprising to see a pullback of a few hundred points before trying to push onward again.

Whether the initial set of resistance levels can be broke on a first test or not, beyond there lies the 2018 record high at 7903. This makes the zone from right around 7700 up to just over 7900 a very important one to pay attention to in the days/weeks ahead.

For now, continuing to run with a bullish bias but that appears likely to be soon put to the test. A corrective move, whether it comes in the form of a pullback or consolidation, could do the FTSE some good for extending into fresh record territory. The preferred strategy is to buy on dips over chasing momentum.

 

FTSE DAILY CHART

ftse daily chart

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

 

Written by Paul Robinson, Market Analyst. 13th Jan 2022. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,019
    • Total Posts
      88,023
    • Total Members
      69,015
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Zeltuan
    Joined 28/09/22 08:19
  • Posts

    • Early Morning Call: Risk assets being beaten up again USD continues to benefit from the market edginess.     This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
    • For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK. Today’s coverage:   Indices: Europe another lower start and new lower lows for the year for many markets apart from UKX, NKY and ASX200 FX: USD continues climb. GBP resumes drop as IMF warns UK govt about working against monetary policy. Watching Dax and EURUSD around German Cons Conf data Equities: Earnings – BOO H1. AAPL ditches iPhone production increase as demand drops – highlighting potential drop in Q3 earnings   Commods: Gold down at new 28mth low. Oil reversing Tuesday’s first gain in a near a week. BTC near 14wk low      
    • Selling resumed across Asian markets overnight, with the Nikkei losing 2% and the Kospi 3%, and other indices also dropping sharply again. The US 10-year Treasury yield has moved above 4% for the first time since 2010, as markets continued to price in additional US rate rises. The UK situation continues to provide concern, as the IMF waded in last night with a fairly blunt warning about the country's financial situation, and calling on the British government to consider reversing some of its tax cuts. Even US Treasury Secretary Janet Yellen said she was monitoring the situation in the UK very closely. US and European futures are down again, after a quieter day yesterday, and the focus is sure to remain on the outlook for more tightening of monetary policy by major central banks.   
×
×
  • Create New...