FTSE100 - Bulls need day end closing above 6744

TVC:UKX   FTSE 100 Index
FTSE’s bearish break from rising wedge formation as pointed out yesterday did lead to a drop to 6663 levels today before the index spiked on weak data.

Bad news is good news

Today’s reaction to weak UK July preliminary PMI figures (highlighting the economy at weakest since 2009) was the classic “bad news is good news” trade. Weak data pushed up prospects of BOE acting (rate cut/QE) in July. Thus, Pound weakened and FTSE             spiked to a high of 6730 levels.

Technicals – Bulls need a daily closing above 6744

  • Despite sharp recovery in FTSE100 from daily lows of 6663 to 6730, prices fail to see a break above symmetrical triangle resistance on hourly, while the RSI continues to form lower highs.
  • The price action suggests we could break lower from this week’s consolidation pattern.
  • Only a day end closing today or next week above 6744 would suggest continuation of a rally from post Brexit low and open doors for 6800+ levels.

Check out Tim Young, Trader at Ayondo who joined us on today’s Finance show to discuss his views on FTSE100 – Link - https://www.youtube.com/watch?v=cOVKrWHSVmg
A nice analysis. ^_^ Technically, there would be no too much room for UKX to go higher before a correction. expect to see a pullback soon.
summer6 summer6
The attached is the weekly chart. This level could be a key support/resistance.
Nice thanks
summer6 TipTVFinance
You're welcome. ^_^ It's good to learn FA from your analysis.
Am learning as well mate. i have been expecting a correction to 6550 this week. we were down today into 6660s ..but the "bad news is good news" happened. Lets see.for next week.. the downside level could be weekly 5-MA
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