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FTSE Technical Evaluation: Extending In direction of Multi-year Resistance

ftse-technical-evaluation:-extending-in-direction-of-multi-year-resistance

FTSE 100 Technical Highlights:

  • The FTSE is nearing its pre-pandemic highs
  • Yearly highs from 2018 and 2019 lie simply past there

The FTSE 100 is continuous its power following a breakout above a barrier of resistance through the trend-line operating off the 2018 excessive. The upward trajectory seems set to proceed within the near-term, however massive resistance lies not far forward.

The pre-pandemic highs created in January 2020 at 7689 together with the 2019 excessive at 7711 makes for a decent zone of resistance which may be troublesome to beat on the primary method. Worth motion will probably be key to observe.

A response, i.e. a swift reversal day, could possibly be the primary indication {that a} correction will start. Given the way in which the FTSE typically occasions trades – three steps ahead, two again – it wouldn’t be stunning to see a pullback of some hundred factors earlier than attempting to push onward once more.

Whether or not the preliminary set of resistance ranges could be broke on a primary take a look at or not, past there lies the 2018 file excessive at 7903. This makes the zone from proper round 7700 as much as simply over 7900 an important one to concentrate to within the days/weeks forward.

For now, persevering with to run with a bullish bias however that seems more likely to be quickly put to the take a look at. A corrective transfer, whether or not it comes within the type of a pullback or consolidation, might do the FTSE some good for extending into recent file territory. The popular technique is to purchase on dips over chasing momentum.

FTSE Every day Chart

ftse daily chart

Assets for Foreign exchange Merchants

Whether or not you’re a new or skilled dealer, we have now a number of sources obtainable that can assist you; indicator for monitoring dealer sentiment, quarterly buying and selling forecasts, analytical and academic webinars held every day, buying and selling guides that can assist you enhance buying and selling efficiency, and one particularly for many who are new to foreign exchange.

—Written by Paul Robinson, Market Analyst

You’ll be able to observe Paul on Twitter at @PaulRobinsonFX

DailyFX supplies foreign exchange information and technical evaluation on the tendencies that affect the worldwide foreign money markets.

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