| 
March 12, 2023
- 131.63 points is the FTSE's largest single-day drop in 5 months.
- Falling prices have precipitated the FTSE's approach to its lower Bollinger Band® at 7,781
Having fallen 132.55 points in 16 days, Friday's session continued down the same path: the FTSE ended the session around the 7,748.35 level today, after Thursday's 131.65 points decline and close at 7,880.
4 months ago, the FTSE fell to a low of 6,826.2 but has since recovered 15.44%.
FTSE could begin to recover as it approaches significant support, now 70.56 points away from 7,677.79. Dipping below could be an indication that further losses are ahead. The MACD is significantly below its signal line, which suggests the market is running out of bearish momentum and could revert to a positive outlook as bulls regain control. The FTSE's lower Bollinger Band® is at 7,781, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
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, ASX 200 drops 2.28% Friday and closed at 7,311. Hang Seng lost 3.04% Friday and closed at 19,926. Nikkei is down to 28,144, losing 479.18 points, after ending the previous session around 28,623.
