FTSE 100 Technical Highlights:
- FTSE chopping its method in the direction of 2021 highs
- Could choose up some momentum right here quickly
- Resistance within the 7000/7150 neighborhood focused
The FTSE 100 has been a chop-fest, as worth motion hems and haws its method larger. The final grind has left the index tough to get deal with on, however it might quickly achieve extra momentum as normal danger urge for food for shares, globally, stays sturdy.
Why aside from sturdy danger urge for food would possibly the FTSE garner extra regular shopping for stress? From a catalyst standpoint that’s unclear, however from a worth motion standpoint usually occasions gradual rises give-way to a surge within the absence of a detrimental occasion. In current weeks, the DAX is an instance of how a gradual grind/base can result in a shot larger.
The FTSE’s first goal is the yearly excessive at 6903, and from there a fair bigger take a look at of a collection of lows created throughout 2019 and 2020. There are quite a few inflection factors from simply over 7k as much as round 7150 that might doubtless show to be a pivotal take a look at.
From a tactical standpoint, the buying and selling bias is to the upside. Potential for a rally with higher continuity seems to be shortly rising. The chop could proceed a short while longer earlier than this occurs, however so long as the collection of upper lows courting to December can proceed, then the outlook will stay optimistic.
It will take a clipping of the newest swing-low at 6618 to forged a shadow over the upside. Even then, there’s a regular trend-line connecting a lot of the lows simply talked about. A breaking of that line is required to in the end flip the outlook favorable for shorts.
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—Written by Paul Robinson, Market Analyst
You’ll be able to comply with Paul on Twitter at @PaulRobinsonFX