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April 07, 2023
- 78.62 points is the FTSE's largest daily jump in 7 weeks.
- Market price breaks 13.84 points above key Fib handle of 7,727.72
The sentiment that generated 111.26 points in cumulative gains over the past 3 days was further evident for the FTSE. Yesterday continued on the same track for the FTSE — bullish sentiment helped the FTSE to push 78.56 points higher, reaching session highs around 7,742, before consolidating until close. Ultimately, the FTSE closed yesterday at 7,741.56.
The index has been trending lower for about a month. The FTSE has fallen back around 4.36% over the past a month, from a notable high of 8,012.53.
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 7,727.72 by around 13.84 points with prices hammering out a 7,654.54 – 7,742 session range. The FTSE's lower Bollinger Band® is at 7,636.65, indicating that the market is oversold and fertile for new buyers. On the other hand, note that the FTSE is 29.37 points away from testing key resistance at 7,771. Peaking above this level could inspire market bulls and open the path to further gains.
According to technical analysis, it looks as if the FTSE likely to continue pointing upward in the short term.
Fundamental indicators – highly important Construction PMI data from United Kingdom beat analyst expectations of 53.5 with a reading of 50.7.
The FTSE shows positive signs, other assets are also on par: KOSPI Composite Index added 1.27% and closed around 2,459.23 yesterday. Nasdaq is trading around 12,100 after ending yesterday's session at 12,000 (up 0.76% today). Notably, DAX rose 0.5% yesterday and closed at 15,520.
Upcoming fundamentals: United Kingdom CFTC GBP speculative net positions is scheduled for today at 20:30 UTC.
