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FTSE 100 Newest: Moving Higher Towards Trading Range Resistance
FTSE 100 Worth, Chart and Evaluation:
- A constructive month for the FTSE as bulls take management.
- IG shopper sentiment hints at additional upside.
Really helpful by Nick Cawley
Constructing Confidence in Trading
The UK huge board continues to stair-step greater in August after hitting a multi-month low at 5,854 on the finish of July/begin of August. Latest value motion has pushed the index again above the 20- and 50-day transferring averages and now targets each the 50% Fibonacci retracement of the COVID-19 sell-off at 6,233 and the highest of the latest trading vary at 6,346. This trading vary has held for the final six weeks and whereas the topside could also be coming underneath risk, the FTSE 100 will want a powerful driver whether it is to make a confirmed break greater. Volatility (ATR) stays low throughout the Summer season lull, whereas the CCI indicator means that the latest transfer greater is beginning to change into stretched. If the market does proceed greater, three areas of potential resistance seem at 6,413 (200-dma), the June multi-month excessive at 6,515, adopted by the 61.8% Fib at 6,577, all troublesome hurdles to beat in a low vol setting.
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FTSE 100 Each day Worth Chart (January – August 12, 2020)
The most recent IG Consumer Sentiment Report exhibits that retail merchants are 60.96% net-long the FTSE 100 with the ratio of merchants lengthy to quick at 1.56 to 1. We usually take a contrarian view to crowd sentiment, suggesting that the FTSE 100 might fall. Nevertheless,merchants are much less net-long than yesterday and in contrast with final week. Latest adjustments in sentiment warn that the present FTSE 100 value development might transfer greater regardless of the very fact merchants stay net-long.
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What’s your view on the FTSE 100 – bullish or bearish?? You’ll be able to tell us through the shape on the finish of this piece or you possibly can contact the writer through Twitter @nickcawley1.