FTSE 100 Technical Update

Wednesday, 1st May 2019 09:27 - by Rajan Dhall

The FTSE 100 is still in an uptrend following its retracement down from 7903 in May 2018. Today there is a key risk event in the FOMC rate decision. Today the rate is not expected to be changed but the guidance is key. If the Fed still continue to insinuate they are will to wait and see how the economy goes before making a decision then the equities markets may move higher. On the flip side, if they feel the data has improved enough to start tightening then they may say the Fed could raise interest rates in the second half of the year. This would be negative for stocks. 

Looking at the technicals now:

• Price found resistance at 7637 if price breaks this it could be a bullish sign
• The RSI trendline on the indicator could inspire a retracement from the recent run from 6536 to 7528
• Currently, there is a bearish shooting star candle which formed yesterday
• If price moves lower 7254 could be an interesting support level

Tonight event will give us more clarity and will let is know how much pressure Trump can have on the Federal Reserve. The US president has recently been in the press talking about higher interest rates and loosening monetary policy and the Fed have a duty to remain independent but keep an eye on these technical levels and how the price reacts to tonight's events. 

Kind Regards

Rajan Dhall

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.