FTSE 100 Rallying Into Overbought Territory, Shopper Sentiment is Blended

FTSE 100 Value, Chart and Evaluation:

• FTSE is attempting to reclaim 6,000 as risk-markets shine.
• Shopper sentiment is combined.

The FTSE 100 is taking its cue from the US and Asia and is pushing greater in early commerce and is again above 6,000 for the primary time in practically one month.US markets had been agency all final week as buyers started pricing in a Joe Biden victory within the US presidential election, whereas the Nikkei 225 is now again at highs final seen practically three many years in the past. The VIX volatility index has fallen sharply over the past 10 days from a two-month excessive round 36 to a present stage of 26 as buyers flip bullish and search threat.

S&P 500, Nikkei 225 Weekly Forecast: Stimulus and Pandemic in Focus

Whereas the FTSE could also be urgent forward on optimistic worldwide drivers, the UK home outlook stays cloudy with little progress made on Brexit commerce talks. There stays a large divergence between the 2 sides on stage enjoying discipline commitments and fisheries, and whereas each side proceed to imagine {that a} deal is feasible, neither is making a transfer to interrupt the present deadlock.

Sterling (GBP) Weekly Outlook – Brexit Deadline Nears as UK PM Johnson Comes Underneath the Highlight

The every day FTSE 100 chart stays optimistic however is exhibiting indicators of being overbought. The index has damaged above all three transferring averages however must make a detailed and open above the 200-day easy transferring common to make the transfer extra convincing. The current collection of bullish candles, with greater highs and better lows, stays intact and the UK huge board hit a close to one-month excessive earlier within the session earlier than dipping again beneath 6,000. A break above 6,042, the October 9 excessive, opens the way in which again to the September 15 excessive at 6,128. Above right here the 50% Fibonacci retracement at 6,239 comes into play.

Shifting Averages (MA) Defined for Merchants

The CCI indicator is flashing an oversold sign presently and this must be watched to see if the market turns into much more stretched within the short-term. The chart reveals a cluster of outdated highs and all three transferring averages offering ranges of assist all the way in which again down to five,800.

FTSE 100 Every day Value Chart (March – November 9, 2020)

IG consumer sentiment knowledge present 57.14% of merchants are net-long with the ratio of merchants lengthy to quick at 1.33 to 1.Positioning is extra net-long than yesterday however much less net-long from final week. The mix of present sentiment and up to date adjustments offers us a additional combined FTSE 100 buying and selling bias.

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What’s your view on the FTSE – bullish or bearish?? You possibly can tell us through the shape on the finish of this piece or you’ll be able to contact the creator through Twitter @nickcawley1.