UK Index Faces a Stern Problem with Yearly Excessive in Sight

FTSE Evaluation:

• Softer GBP/USD lifts the FTSE within the morning session
• Key zone of resistance protecting FTSE from yearly excessive
• Blended FTSE sentiment studying could contribute to muted worth motion

FTSE Begins the Day on the Entrance Foot

The FTSE began the day within the inexperienced however is considerably flat heading into the afternoon session. Banks have began the day nicely as Natwest, Barclays, Customary Charted, HSBC and Lloyds are up, on the time of writing. Main movers this far embrace: Royal Mail, Taylor Wimpey and Barratt Developments, whereas Anglo American, Antofagasta and Polymetal prop up the bottom of the desk so far as day by day motion is anxious.

Key Technical Ranges for the FTSE 100

The UK Index, like different main indices, has continued its bullish run since March 2020 lows. The ascending trendline (shaped in early February this yr) stays intact regardless of quite a few makes an attempt to interrupt and shut beneath it.

The weekly chart beneath highlights the subsequent zone of resistance dealing with the index, between 7090 and 7110. This zone acted as help for almost all of 2019 and stays a key degree to observe for bullish continuation.

FTSE 100 Weekly Chart

Chart ready by Richard Snow, IG

Taking a better have a look at the day by day chart, its simpler to see what number of instances the FTSE approached the ascending trendline earlier than pulling again above. Though there have been intra-day breaks of the trendline, the prolonged decrease wicks present an instantaneous rejection of these decrease ranges, persevering with the bullish pattern.

Regardless of all of this, the index has not offered any main indicators of an prolonged bullish transfer as worth motion trades modestly greater. A failure to interrupt above the resistance zone, and the current excessive of 7170, could lead to a interval of consolidation within the absence of any surprises. Additional so far, the MACD indicator reveals a slowdown in current upward momentum.

FTSE 100 Each day Chart

Chart ready by Richard Snow, IG

Blended Sentiment Studying Might Contribute to Muted Value Motion

• FTSE 100: Retail dealer information reveals 66.96% of merchants are net-long with the ratio of merchants lengthy to brief at 2.03 to 1.
• Positioning is extra net-long than yesterday however much less net-long from final week
• The variety of merchants net-long is 0.91% greater than yesterday and 16.11% decrease from final week, whereas the variety of merchants net-short is 0.17% greater than yesterday and 9.10% greater from final week.
• The mix of present sentiment and up to date adjustments provides us a additional combined FTSE 100 buying and selling bias.

— Written by Richard Snow for DailyFX.com

Contact and observe Richard on Twitter: @RichardSnowFX