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June 01, 2023
- The FTSE hasn't been as low as 7,446 in 4 months.
- Falling prices have precipitated the FTSE's approach to its lower Bollinger Band® at 7,523.65
Having fallen 376.44 points in 7 days, Yesterday's session continued the recent downtrend: overall, the FTSE shed around 76 points or 1% and ended yesterday's session at 7,446.
The index has been trending lower for about a month. The FTSE is now trading 6.12% below the significant high of 8,012.53 it set around 3 months ago.
The MACD is significantly below its signal line which suggests that the existing bearish sentiment is beginning to swing around toward a more bullish outlook. The Relative Strength Index has gone below 30, going into oversold conditions and allowing more gains. Bollinger Bands® shows an indication of recovery: the lower band is at 7,523.65, a low enough level to, generally, suggest that the FTSE is trading below its fair value.
Overall, looking at the technical analysis landscape, it seems the FTSE —which is currently on a downtrend— might reverse course and start pointing upward in the short term.
In the meantime, negative performances are also seen in other markets, CAC falls 1.54% yesterday and closed at 7,209.75. Hang Seng is down to 18,234, losing 365.73 points, after ending the previous session around 18,600. DAX slides down 1.54% yesterday and closed at 15,900.
Upcoming fundamentals: United Kingdom Manufacturing PMI figure is projected at 46.9. It previously stood at 47.8; data will be released today at 08:30 UTC.
