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June 26, 2023
- The FTSE is eyeing the 7,432 support level
- Falling prices have precipitated the FTSE's approach to its lower Bollinger Band® at 7,401
The FTSE's bearish run has lasted 3 days so far (-140.89 points). Friday's session continued down the same path: the FTSE dropped 40 points early on and stayed at 7,462.
The index has been trending lower for about 2 months. Approximately 4 months ago, the FTSE reached a significant high of 8,012.53 but has struggled to hold onto its gains and declined 6.37% since then.
A study of the FTSE's historical price actions shows FTSE could begin to recover as it approaches significant support, now 29.95 points away from 7,432. Dipping below could be an indication that further losses are ahead. Trend analysis indicates that the FTSE made an initial break below its 200 day Simple Moving Average at 7,455.45, a possible indication of a forthcoming negative trend. According to asset volatility analysis, the FTSE's lower Bollinger Band® is at 7,401, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
All in all, the technical analysis suggests the FTSE has no clear-cut direction.
In the meantime, negative performances are also seen in other markets, after ending Friday's session at 16,000, DAX lost 170.06 points and is trading around 15,830. After ending Friday's session at 4,382, S&P 500 lost 33.67 points and is trading around 4,348.33. Nasdaq lost 1% Friday and closed at 13,631.
Upcoming fundamentals: United Kingdom MPC Member Tenreyro speech set for tomorrow at 08:30 UTC.
