Analysis

FTSE 100 Value Outlook: Sellers Making an attempt to Acquire the Higher Hand Once more

FTSE 100 Technical Highlights:

FTSE lagging behind different main marketsValue motion favors decrease costs from right here

For our analysts intermediate-term elementary and technical view on the FTSE and different main indices, take a look at the Q3 International Fairness Markets Forecast.

FTSE lagging behind different main markets

Final week, once I final appeared on the FTSE right here it was famous that additional weak spot may see the market commerce all the way down to ‘the’ bull market trend-line beginning off the 2009 low. It’s not that removed from right here and wouldn’t require a lot of a shove to get to that time.

Close to-term there are a few issues price noting. The FTSE when in comparison with different main markets is comparatively weak, having solely bounced a really modest quantity. Whereas different main indices (S&P 500, DAX, Nikkei) haven’t had rip-roaring rallies, there’s however a noticeable lag, and suggests the UK index may dump extra shortly.

Including to the bearish case is the value sequence of late engaged on decrease lows and decrease highs, with the newest decrease excessive probably arriving on the 200-day MA. A drop beneath 7122, yesterday’s low, is seen as confirming a swing-high on the 200 and getting the FTSE rolling again downhill.

Within the occasion the index holds up from right here, to show it bullish would require some work given the poor technical posturing. A rally past 7305 might be wanted for starters, adopted by a capability to carry a rally. This can take a while to exhibit, so for now so long as the 200-day or 7305 on the highest maintain as resistance the FTSE is about up for extra promoting quickly.

Take a look at this information for four concepts on tips on how to Construct Confidence in Buying and selling.

FTSE Every day Chart (bearish worth sequence)

FTSE Weekly Chart (2009-present trend-line)

FTSE 100 Price Outlook: Sellers Trying to Gain the Upper Hand Again

UK 100 Index Charts by Tradingview

You may be part of me each Wednesday at 930 GMT for stay evaluation on fairness indices and commodities, and for the remaining roster of stay occasions, take a look at the webinar calendar.

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—Written by Paul Robinson, Market Analyst

You may comply with Paul on Twitter at @PaulRobinsonFX

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