This commentary below was originally published on our client platform on Monday 30-August.
"Persistent tests of a level may eventually see it being breached, with a new range and trend potentially being established. When reviewing the daily chart of the index, this may be the setup as the price trades near the upper boundary of a 5-month range, with 3 tests each of both of support and resistance having been made. On 19 August, the price traded into and rebounded off the 61.8% Fibonacci retracement level while also holding the pivot. The rebound itself was also in line with the 50-day exponential moving average which is now gradually rising. We also note the price rising from its volume shelf, suggesting strong interest and activity around the current level. A close above 7219 could see the price establish a new range. Temporary failure is a close below 7027."
Time Frame: Medium term
Current Level: 7173
Note: On multiple occasions throughout this year we have reviewed the FTSE 100 with 'buying on pullbacks' being a predominant feature in our commentary while also recommending counter-trend 'shorts'. Short idea attached, where full target was reached.
For real-time insights and ideas, get in touch today.
"Persistent tests of a level may eventually see it being breached, with a new range and trend potentially being established. When reviewing the daily chart of the index, this may be the setup as the price trades near the upper boundary of a 5-month range, with 3 tests each of both of support and resistance having been made. On 19 August, the price traded into and rebounded off the 61.8% Fibonacci retracement level while also holding the pivot. The rebound itself was also in line with the 50-day exponential moving average which is now gradually rising. We also note the price rising from its volume shelf, suggesting strong interest and activity around the current level. A close above 7219 could see the price establish a new range. Temporary failure is a close below 7027."
Time Frame: Medium term
Current Level: 7173
Note: On multiple occasions throughout this year we have reviewed the FTSE 100 with 'buying on pullbacks' being a predominant feature in our commentary while also recommending counter-trend 'shorts'. Short idea attached, where full target was reached.
For real-time insights and ideas, get in touch today.
