FTSE 100 technical analysis update

Tuesday, 18th June 2019 10:19 - by Rajan Dhall

The daily chart below looks like its heading toward the trendline at about the 7462 level. This comes as global risk sentiment is improving due to the loosening of monetary policy from central banks around the world. 

We had a minor dip 5 days ago but we pulled back at the support level framed by the wave high between March and April. 

Now it seems like the weakness in the GBP currency has inspired some upside momentum and tomorrow we get the latest from the Fed who seem to be tilting toward the dovish camp. If we do get a (hawkish) surprise from the Fed, a test of the 0.23% Fib level at 7300 could be possible. 

Currently, based on the information we have at hand, the chart is indicating a bullish continuation as the bull flag pattern broke last week. The target might be the wave high just above the 7500 area. On the weekly chart below the daily one, I have simplified the chart to show where the target could be.

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.