FTSE 100 Technicals

Friday, 7th June 2019 10:58 - by Rajan Dhall

Following on from this article on the FTSE 100 Technicals - http://www.lse.co.uk/blogs/expert/rajan-dhall/7w3uiclkvvzr28c/ - I have updated some of my views.

Don't be confused the chart below is the weekly (the other one in the link is a daily) but I will get on to the daily chart to zoom in lower down in the article. 

The picture has moved to a more bullish scenario as the worlds central banks look to have become more accommodative. 

The blue shaded area is the key breakout level for me. If we see a break there with some volume backing the move we could be heading to new highs. 

Fundamentally this is contingent on the Fed cutting later on in the year but the futures market is pricing this in. Also the weaker the pound the better.

On the shorter term daily timeframe we have broken out to the upside.

The initial price target would be the blue shaded area but there could be some strong resistance there.

Energy and base metals would need to recover somewhat in the same vein as gold to support some of the miners and oil producers.

So this would take some leniency from "Tariff Man".

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.