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February 22, 2023
- Price action breaks below important support level at 7,919.62
- Medium-term trend indication turns negative after MACD index generates a crossover sell signal
While on a 4 day slump, falling a total of 1.19%, More of the same today: the FTSE is consolidating around the 7,917.26 level after dropping 60.49 points at the start of the trading session.
The index has been trending positively for about 2 months. The FTSE is now trading 16.87% above the significant low (6,826.2) it slumped to 4 months ago.
The MACD index is indicating that momentum is shifting from bullish to bearish following a negative crossover. When the MACD falls below the signal line, it is typically considered to be a bearish development favoring short positions. The FTSE fell below the 7,919.62 support zone and moved 2.36 points beyond it; the next level of support with significant buyer interest is estimated at 7,857.7.
Looking forward, the FTSE is poised to extend its strong downtrend and continue declining.
Fundamental indicators – United Kingdom Services PMI came out at 53.3, while a consensus of analysts was expecting 49.2.
In the meantime, negative performances are also seen in other markets, Dow Jones is down to 33,130, losing 697.1 points, after closing at 33,827 in the preceding trading session. After ending yesterday's session at 2,459, KOSPI Composite Index lost 41.32 points and is trading around 2,417.68. S&P 500 is trading around 3,997.34 (down 81.66 points).
Upcoming fundamentals: United Kingdom BoE MPC Member Mann scheduled to come out tomorrow at 09:30 UTC.
