FTSE 100 Technical Analysis

Wednesday, 27th February 2019 14:40 - by Rajan Dhall

Since my last technical analysis article on the FTSE (http://www.lse.co.uk/blogs/expert/rajan-dhall/pcu2qx5ar8egc8k/) we have had some developments.

The price pulled higher to create a new high off the back of the trade deal sentiment. It has been said that Tump and Xi are still sounding positive but how much bullishness has been priced in?

If Trump takes off the original tariffs then we could see a significant upside extension of the move past the 7262 wave high. 

• Price action on the weekly chart is currently very bearish
• Bounce if the 50% fib to the downside
• Technically a softer Brexit is good for US companies, but the pound is getting stronger and many of the FTSE companies are USD denominated
• 6879 could be the next target if the GBP strength continues and there is no further news on the US-China trade deal

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.