Technical Update - FTSE 100 and FTSE  250 uptrends facing strong resistance. Will they break it? Technical Update - FTSE 100 and FTSE  250 uptrends facing strong resistance. Will they break it? Technical Update - FTSE 100 and FTSE  250 uptrends facing strong resistance. Will they break it?

Technical Update - FTSE 100 and FTSE 250 uptrends facing strong resistance. Will they break it?

Equity 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

FTSE 100 is continuing its short-term uptrend towards resistance at around 7,473. The trend could extend to 7,578 possibly 7,650.
The key indicator to keep an eye on is RSI. If it closes above previous peak, it has cancelled the divergence
I
f FTSE 100 reverses and closes below 7,294 we could see a larger correction down to around 7,200-7,100.

Source: Saxo Group

FTSE 250 after breaking above its medium-term falling trendline FTSE 250 was rejected at 0.786 retracement and resistance around 19,622-19,615.
Testing the trendline from the upper side it seems like the Index will have another go at the 19,622 resistance. If closing above, there is room up to 20,467.
RSI is still showing positive sentiment and no divergence supporting the bullish scenario
If FTSE 250 slides back and closes below 19K a bear trend could unfold pushing the Index down to around 18,500-18,000.

Source: Saxo Group

RSI divergence: When instrument price is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and an weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend

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