Where next for the FTSE?

The FTSE has been on the rise since early November, rising almost 10% so far this year. Could the run-up be running out of steam?

Charts (3)

 

After strong gains in the FTSE could momentum be slowing?

The FTSE has been on the rise since the announcement of the covid vaccine back in early November. The UK index has rallied just shy of 10% so far this year, hitting an all time high of 7220 in June. The price has since eased lower, testing its 50 dma, although remains above its multi week ascending trendline.

The RSI is showing bearish divergence suggesting that momentum could be running low.

A break through the 50 dma could see the price slip towards 6950. It would take a move below this level for sellers gain traction.

Should the 50 sma hold, the price could rebound towards 7120, 7220 and on towards fresh post pandemic highs.



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