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May 06, 2023
- 75.74 points is the FTSE's largest daily jump in 3 weeks and a half.
- Known Fib level 7,782 serving as battleground for bulls and bears
During a 5 day fall, dropping a total of 1.52%, (195.87 points), A possible reversal detected from yesterday; the FTSE went up to 7,778.38 yesterday, gaining 0.98%.
The index has been trending positively for about a month. The FTSE has recovered 12.84% since descending to a significant low of 6,826.2 around 6 months ago.
Fibonacci-focused traders would be interested to note that FTSE is oscillating around the key Fibonacci resistance level of 7,782. The FTSE's lower Bollinger Band® is at 7,648, indicating that the market is oversold and fertile for new buyers. In contrast, the FTSE could be slowing down soon as it approaches resistance at 7,897. Of course, crossing it might suggest further gains are ahead.
Following today's unexpected gains, extensive multifactorial technical analysis forecasts the FTSE to buck against its prevailing downtrend and begin to turn higher in the short term. With all probabilities considered, the the FTSE is expected to pick up significant bullish sentiment in the coming days.
Fundamental indicators – data for United Kingdom Construction PMI published yesterday at 08:30 UTC came out at 51.1, beating projections of 51 and showing improvement over the preceding figure of 50.7.
The FTSE shows positive signs, other assets are also on par: notably, Dow Jones rose 1.65% yesterday and closed at 33,128. S&P 500 went up by 1.85% yesterday, and closed at 4,136.25. Nasdaq went up by 2.25% yesterday, and closed at 12,235.
