FTSE 100 Technical Highlights:
FTSE rising wedge broke, however 200-day put in a flooringMassive-picture H&S nonetheless a risk, however on maintain for now
For our analysts intermediate-term basic and technical view on the FTSE and different main indices, take a look at the Q3 World Fairness Markets Forecast.
FTSE rising wedge broke, however 200-day put in a flooring
On Wednesday, the FTSE was persevering with its decline from a rising wedge formation we’d been specializing in within the week earlier than, because the upward grinding worth motion smacked of a correction of the down-move off the July excessive.
However as soon as once more the 200-day got here into play as a significant threshold to pay shut consideration to. It was the 6th time since Might a flip of some type has developed from the long-term shifting common. Generally it isn’t that influential with out the assistance of a worth stage, and generally it’s, as was the case once more this week.
Now that the UK index is taking pictures larger off help the upside should be revered once more. Nonetheless, there may be nonetheless loads of room for the bigger topping, a head-and-shoulders formation, to come back to type and submit a big menace in This fall.
For now, longs have just a little extra room till the July 25 low at 7462 earlier than it might come into play as resistance. Shorts could also be best-served by ready for worth motion to decelerate and provides indicators once more that the FTSE desires to roll over.
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FTSE Every day Chart (200-day retains flooring in, H&S nonetheless has potential)
UK 100 Index Charts by Tradingview
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—Written by Paul Robinson, Market Analyst
You possibly can observe Paul on Twitter at @PaulRobinsonFX