Michael_Macdonald-XATSUK

UK FTSE100 to find difficulty sustaining further gains

TVC:UKX   UK 100 Index
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The UK FTSE100 Index is regaining higher levels.

Prices have posted a close above the 7354.14 high of January, suggesting potential for further gains towards the 7465, (38.2%) Fibonacci projection of the november-January rally. However, studies remain mixed and are beginning to show negative divergence, highlighting continued profit-taking pressure and risk of a corrective pullback.

A close below the 7192.94 low of 24 February would add pressure to price action, but a further close below the 7093.57 low of February is needed to turn sentiment negative, and confirm a deeper, more significant fall.

A close above psychological resistance at 7500 would further improve price action, as investors continue to increase exposure to UK equities.