FTSE 100 Technical Highlights:
- FTSE grinding higher, at risk of falling soon
- Big-picture price pattern could become influential
For our analysts intermediate-term fundamental and technical view on the FTSE and other major indices, check out the Q3 Global Equity Markets Forecast.
FTSE grinding higher, at risk of falling soon
The FTSE remains a laggard among major global indices, with it struggling behind major stock markets in Europe, Asia, and the U.S. This leaves it in a vulnerable state as is, and with price action backing this notion up it might not be long before the UK index rolls over.
The choppy upward motion is taking on a rising wedge, or a corrective wedge in this case with the primary down since the July 30 high. The underside trend-line the FTSE is currently sitting on needs to break, first, before momentum can kick in.
Should it do so then the next level to watch is the 200-day and September 10th low situated in the window of 7211/199. From there the next major level doesn’t arrive until the 7020 level, the low from last month.
If price gets to that point, then we would be looking at the potential to complete a head-and-shoulders formation. However, if the current upward move off the August low continues then we will have to respect a near-term bullish outlook, but one that could still turn down in favor of a topping formation. For now, keeping an eye on the trend-line and taking it from there…
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FTSE Daily Chart (watch wedge)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX