Date: 17 Apr 2019
Although stocks in the London market left the market higher than on Monday, the FTSE100 was unable to break through the essential structural level of 7468 points yesterday. This is the market’s second attempt to cross this critical market.
Since our last look at the index on 21 March 2019 (link: UK100 hits new highs despite Brexit), the market first dipped and found support between 7225 and 7190 points.
From here the market recovered, made a second attempt to overcome the significant structural level at 7320 and was able to rise to new highs without any problems. At 7470 points, the market again found resistance. Even with the second attempt yesterday, the market did not manage to jump above this level.
Relevant economic data is due today. At 08:30 a.m. GMT there are data on the Consumer Price Index for March. A speech by BoE’s Governor Carney at the Network for Growing the Financial System Conference in Paris is then scheduled for 1 p.m. GMT. This could provide an impetus for the market.
On the technical side, the two positive lines of the MACD Oscillator are moving towards each other, and the histogram continues to flatten, despite the rising index. This could be the first sign that the upside potential could weaken.
If the market does not show further upward momentum, leaving the field to the bears, support zones for the market could lie in the 7350, 7270 and 7130 areas.
If, on the other hand, the bulls manage to stay on track, then the highs of October 2018 around 7550 points could be the first resistance zone.
Further up, in the 7630 and 7700 zones, there could be more resistance.
UK100 Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst
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