The FTSE 100 index of the Price Outlook.
The FTSE-100 Forecast: Index driven By the Price Gap, and Can it Continue?
The FTSE 100 surged to its highest level since early April on Thursday, after the equity index pierced by a long barrier technique around 6 200. The area is marked confluent Fibonacci levels, and worked to stall bullish attempts higher in the past, particularly as it coincides with the swing high at the end of April. All in all, the ascending channel, with the FTSE 100 trades remains intact and passage through the resistance of the licence for the bulls to capitalize on the open air above.
The FTSE 100 Price Chart: 4 Hours period of Time (March – June)
With a difference of prices, ranging from approximately 6,200 to 6,400, and the bullish break above the resistance at 6,200 opens the door to a solution of the continuation – due to the nature of the price differences and the FTSE must now negotiate the specialists near 6 400. Of 6 400 aligns not only with the top-of-the-gap”, but also another Fibonacci level. That said, the place is likely to influence the price, at least to a certain degree, and in the days to come.
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If sentiment shifts and the appetite for risk decreases, the FTSE 100 could retreat from the resistance to 6 400 and fall in the 6 400 6 200 range. Since the vacuum has been filled, the price movement should be met with more resistance – regardless of the direction. Anyway, the FTSE-100 should now take advantage of the support of prior resistance at 6,200 and due to the level of its influence in the past, it may prove to be a vital staging ground for the upward trend of the attempts down the road.
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The Change in the
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With the ascending channel intact, and a series of higher highs and lower, the FTSE 100 share price suggests that the force may be on the horizon. Coupled with the IG’s Client Sentiment Data, which reveals the retail clients are net short, it seems to me that the more short-term, the trend is leaning toward a continuation of the increase.
That being said, I have my reservations about the current stock market activity and the suspect, the risk-reward relationship for many indices, it is currently tilted to the downside – a topic discussed in my webinar. However, the price is impassive and insensitive, and the recent price action, it is hardly a harbinger or bearish reversals, so the price may continue higher in the short term, regardless of the underlying fundamentals. In the meantime, follow @PeterHanksFX on Twitter, updates.
–Written by Peter Hanks, senior Analyst for the DailyFX.com
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