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May 15, 2023
- 24.04 points is the FTSE's largest daily jump in 4 weeks.
- Price action backs away from resistance at 7,897 despite bullish mood
While the FTSE was in the midst of a 5 day downtrend— in which it lost a total of 1.82%— Friday may indicate a change of direction; the FTSE recovered from the previous trading session's losses and went up to 7,754.62 Friday after it traded lower at 7,729.
The index has been trending positively for about 2 months. After hitting an important low of 6,826.2 approximately 7 months ago, the FTSE has bounced back 13.25% since.
Trend and momentum analysis indicates that despite ticking up in the session, the short-term outlook has become negative after the MACD moved below its signal line — typically a bearish indicator that upward momentum is running out of steam. Analysis based on the asset volatility indicates that the FTSE's lower Bollinger Band® is at 7,645, indicating that the market is oversold and fertile for new buyers. A study of the FTSE's chart reveals various key levels to watch: although the FTSE is appreciating today after rising as high as 7,772.79, price action is now slowing and consolidating around 142.26 points below the 7,897 resistance level.
With market volatility ebbing, the current technical outlook indicates the FTSE will remain range-bound for the immediate future.
The FTSE shows positive signs, other assets are also on par: Hang Seng climbs 1.92% Friday and closed at 19,627. Nikkei is trading around 29,626 after ending Friday's session at 29,400 (up 0.81% today). CAC is trading around 7,415 after ending Friday's session at 7,381.78 (up 0.45% today).
Upcoming fundamentals: projections for United Kingdom Average Earnings Index +Bonus are set for a continuation of decline with 5.8 while previous data was 5.9; data will be released tomorrow at 06:00 UTC.
