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May 27, 2023
- 56.33 points is the FTSE's largest daily jump in 4 weeks and a half.
- Price action is gradually approaching a key resistance hurdle at 7,649.62
While the FTSE was in the midst of a 7 day downtrend— in which it lost a total of 3.43%— A possible reversal detected from yesterday; with a daily low of 7,557, the FTSE closed yesterday at 7,627.2, after ending Thursday at 7,571 and gaining 56.2 points (0.74%).
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 5.51% since then.
Concerning technical analysis and more specifically, trend indicators, the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Asset volatility analysis shows that the FTSE's lower Bollinger Band® is at 7,570.34, indicating that the market is oversold and fertile for new buyers. Analysis of the FTSE's recent price action suggests the FTSE could be slowing down soon as it approaches resistance at 7,649.62. Of course, crossing it might suggest further gains are ahead.
With market volatility ebbing, the current technical outlook indicates the FTSE will remain range-bound for the immediate future.
Fundamental indicators – data for United Kingdom Retail Sales published yesterday at 06:00 UTC came out at 0.5%, beating projections of 0.4% and showing improvement over the preceding figure of -1.2%.
Other markets are also showing gains as Nasdaq went up by 2.19% yesterday, and closed at 12,976. S&P 500 climbs 1.3% yesterday and closed at 4,151.28.
Meanwhile, Hang Seng lost 1.93% yesterday and closed at 19,100.
