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February 27, 2023
- The FTSE is eyeing the 7,853 support level
- The FTSE looks below 7,889 (21 day Simple Moving Average) as signpost for new negative trend
Over the last 7 days, the FTSE has fallen 1.67%. Friday's session continued the recent downtrend: down on the day: the FTSE closed at 7,878.66 after ranging between 7,870.39 and 7,939.17.
The index has been trending positively for about 2 months. Having soared to a high of 8,012.53 approximately 11 days ago, the FTSE is now trading 1.31% lower.
Technical analysis of the FTSE's past price action reveals multiple support and resistance levels: FTSE could begin to recover as it approaches significant support, now 25.68 points away from 7,853. Dipping below could be an indication that further losses are ahead. Concerning technical analysis and more specifically, trend indicators, the FTSE made an initial break below its 21 day Simple Moving Average at 7,889, a possible indication of a forthcoming negative trend. Analysis based on the asset volatility indicates that Bollinger Bands® shows an indication of recovery: the lower band is at 7,761.49, a low enough level to, generally, suggest that the FTSE is trading below its fair value.
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, CAC falls 1.78% Friday and closed at 7,317.43. DAX lost 1.72% Friday and closed at 15,476. EuroSTOXX drops 1.86% Friday and closed at 4,258.
Upcoming fundamentals: United Kingdom BoE MPC Member Broadbent speech scheduled to come out today at 09:00 UTC.
