FTSE 100 Technical Highlights:
- The FTSE finally broke with global markets in recent sessions
- Currently trading around the 200-day MA with an important trend-line below
Not long ago the FTSE was holding up much better than other global markets, namely the U.S. markets which have been extremely weak. The recent selling in the FTSE has brought to light the 200-day moving average.
On Monday it broke the widely-watched moving average and is now struggling to stay above it the past couple of days. If it can’t quickly recapture the level than it is likely we will see the FTSE decline further very soon, with the next level being a trend-line rising up from the 2020 lows.
This could be a difficult one to play as the last test of it, actually the first confirmation since the trend-line was created (2020/2021 connecting points), saw the line get taken out before price reserved. If we see price trade around the line it will be important to watch how price action behaves to determine whether it is a successful test or not.
To turn the picture bullish with conviction there is much work to be done as the trend has clearly turned lower. First up as resistance is 7339, but even climbing above there doesn’t change the trend. Furthermore, we will need to see other global stock market, namely the U.S. firm up, before we will likely see the FTSE have a shot at stringing together a rally.
FTSE Daily Chart
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—Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX