FTSE 100 technical update

Thursday, 27th June 2019 10:54 - by Rajan Dhall

So indices worldwide are rejoicing at the fact that the ECB and Fed are looking at becoming more accommodating. We are in another phase higher this seems to be on the hope that China and the US will agree on a trade deal in Japan this week. Technically the FTSE 100 has stalled at the longer term weekly trend line in the blue. If this deal does get done price could be on its way back to the highs closer to the 7903.5 area. At the moment the next resistance level on the horizon is 7565.8 level and it confluences with the internal trendline which was well respected in mid-April. 

On the daily chart below, there has been a consolidation phase for the last seven sessions. On this chart, you can see how important the blue technical trendline is. Now a break of this level will be a strong signal that 7565 could be the next target. On the downside 7106 looks to be a short term support zone if the US-China trade deal is not delivered. 7300 or so could be a wave target in a retracement phase if we see a longer-term move up so keep an eye on that level there. Lastly, GBP has been losing some of its shine recently and that is FTSE positive but if we see some significant strength we could potentially move lower. 

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.