Technical Update - FTSE 100 and 250 above falling trendline. Will it continue higher? Strong resistance ahead Technical Update - FTSE 100 and 250 above falling trendline. Will it continue higher? Strong resistance ahead Technical Update - FTSE 100 and 250 above falling trendline. Will it continue higher? Strong resistance ahead

Technical Update - FTSE 100 and 250 above falling trendline. Will it continue higher? Strong resistance ahead

Equity 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

FTSE100 (UK100 cfd) and 250 testing trend line in falling wedge pattern. If closing above there could be further upside. Strong resistance ahead is likely to cut the rebound short.


Covered in this article: FTSE100, FTSE250 and UK100cfd

FTSE100
is at the time of writing breaking the steep falling trendline in what looks like a wedge. If closing the day above FTSE could extend its rebound to test 7K possibly shooting up to key resistance at around 7,088. Divergence on RSI suggest higher levels on the Index but if selling pressure resumes and RSI breaks below its lower rising trendline the rebound scenario is likely to be demolished

If the positive mood fizzles leading FTSE to close back below the falling trendline selling pressure could resume pushing the Index to new lows
Medium-term trend is still down  (see weekly chart) and if key support at 6,788 is taken out FTSE 100 could drop to the strong support area at 6,484-6,397.
Weekly RSI below 40 supports the bearish outlook.

Source: All Charts and data in this article : Saxo Group

Similar picture on UK100 cfd/FTSE future. Testing the falling trendline. Resistance at 7,103. If selling pressure resumes and RSI breaks below rising trendline lower levels below last week’s low at 6,704 is likely.

FTSE 250 is having another go at closing above the falling trendline after failing Friday. If it succeeds this time FTSE250 could test resistance at 17,822. A close above and 18,288 is next resistance.
If buyers cannot keep FTSE250 and has to let it slide back, a close below last weeks low at 16,520 is likely to fuel another wave of heavy selling.
The low last week was a bounce from strong support at around 16,707. A close below that level is likely to make the Index be hit by heavy selling down to around 15,194

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Support Centre
For existing clients, please click here to request support via the Support Centre.

Have a question about our products, platforms or services? Visit the Support Centre to find answers for our most frequently asked questions. If you are still unable to locate an answer to your question, you will also find contact details for your local Saxo office to speak with a representative.

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.