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June 05, 2023- The FTSE hasn't been as low as 7,490 in 2 months.
- The FTSE overcomes resistance at 7,610.24
While in the midst of a 7 day downtrend, losing a total of 3.69% (408.24 points), A possible reversal detected from Friday; the FTSE went up to 7,607.28 Friday, gaining 1.56%.
The index has been trending lower for about a month. 3 months ago the FTSE reached a significant high of 8,012.53 but has consequently lost 6.52% since then.
FTSE broke through the 7,610.24 resistance and climbed above it 2.96 points; next resistance level is at 7,649.62. 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. Price action overcame a known Fibonacci resistance level at 7,551.68 by around 55.6 points with prices hammering out a 7,490 – 7,615 session range. The FTSE's lower Bollinger Band® is at 7,566, indicating that the market is oversold and fertile for new buyers.
The FTSE continues to move higher with technical analysis indicating the trend will continue in the short term.
Other markets are also showing gains as Dow Jones jumps 2.12% Friday and closed at 33,062. Notably, Nikkei rose 1.95% Friday and closed at 31,524. CAC added 1.87% and closed around 7,137.43 Friday.
Upcoming fundamentals: United Kingdom Composite PMI is expected today at 08:30 UTC.
