UK100 hits new highs despite Brexit
Many investors are tired of hearing the word Brexit, and perhaps a little deaf. It is still uncertain whether Brexit will be postponed beyond 29 March. A shift is possible, but not yet safe. The pessimists are already predicting the worst scenarios for the British economy if a Brexit should happen without a deal.
Despite all this, the UK stock index 100 (FTSE100) has set a new 5-month high since Tuesday.
The MACD indicator is wide open but is moving north. The histogram accurately replicates the price movement.
If the price manages to surpass the critical structural level at 7320 and exceeds the five-month high, there could be resistance at around 7390. Further up, the index could encounter further resistance around the 7420 and 7470 range and then meet the significant structural level in the 7560 area, the September 2017 high.
However, if the market does not manage to breach the important level at 7320 sustainably and the market eases, support could be in the 7225 or 7190 range respectively. This range could cross the 200-day line that is currently still moving down. This area of 200 smoothing and the two structural areas could provide a significant support level.
However, if the market breaks through here as well, the bears could take over again. The area around 7,081 could be supported before February’s gains are negated, and the technical picture clouds over.
UK100 Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst.
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