FTSE reaching for long-term highs
James Chen February 19, 2014 10:07 PM
<p>The FTSE 100 (daily chart) has risen by around 6.5% within the past two weeks thus far on a sharp rebound from its 6393 low […]</p>
The FTSE 100 (daily chart) has risen by around 6.5% within the past two weeks thus far on a sharp rebound from its 6393 low in early February. The dip to that low from January’s 6867 high was quick and steep, but fell short of becoming a full correction, which is normally defined as a decline of 10% or more. Having regained much of the ground lost during that pullback, the index has just reached a high that closely approaches the resistance imposed by the intermediate high of 6819 that was hit in late October 2013.
The recent bullishness also places the FTSE on track to target another re-test of the 6875 area that was established as more than a decade-long high in May 2013 and was closely re-tested for the first time at the noted January 6867 high. Yet another re-test of that high would place the index at a critical price juncture that could potentially put it on track once again to continue the multi-year bullish trend. A breakout above that resistance could then target the 7000 psychological level to the upside. Near-term downside support on another pullback within this bullish trend tentatively resides around the 6650 price area.
GAIN Capital UK Limited (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.