FTSE 100 Technical Analysis

Friday, 5th April 2019 11:07 - by Rajan Dhall

The FTSE 100 has recovered very well as global risk sentiment comes back into the markets and Brexit looking murky. 

It seems the stars aligned when sterling lost some lustre and global sentiment in regards to China rose. Most equities indices around the world have risen. Here are some key technical point to watch out for:

• The 7422 congestion area confluences with the downtrend line
• If that level breaks then a test of the 7903.5 highs look more likely
• Keep an eye on Brexit developments for a GBP increase (bearish)
• The bullish candles are showing good momentum
• Be wary as the shooting star from 2 days ago failed

The momentum is clearly still on the upside but there are some key themes. Obviously, the trade deal between China and the US will drive sentiment and financial media outlets are sounding bullish. Global central banks are also turning dovish and this supports looser monetary policy another bullish signal for equities. If the government sorts out this Brexit mess UK companies may look attractive. 

Kind Regards

Rajan Dhall