FTSE maintains strength targeting multi-year highs

<p>The FTSE 100 index (daily chart) has continued its drive towards its key upside target around the 6870-6880 zone, which stands conspicuously as a triple-top […]</p>

The FTSE 100 index (daily chart) has continued its drive towards its key upside target around the 6870-6880 zone, which stands conspicuously as a triple-top resistance area at multi-year highs. Having established this resistance zone in May of 2013 and then re-testing it again in January and February this year, the UK equity index is presently trading just below this area. The current rise occurs after the index rebounded from a major trend line and double-bottoming pattern around the key 6500 support level more than three weeks ago, and has been climbing ever since.

Trading well above both its 50-day and 200-day moving averages, the FTSE continues to be firmly entrenched in a long-term bullish trend, but should soon be due for at least another pullback. Intermediate downside support on this pullback currently resides around the 6700 level, near the peak of the noted double bottom pattern. To the upside, the index continues to target the triple top resistance area around the 6870-80 multi-year highs. Any breakout above that zone would confirm a continuation of the long-term bullish trend with a further upside target around the 7000 psychological level.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.