Technical Analyst, Saxo Bank
FTSE 100 reached the 0.764 projection of the double bottom last week. There is divergence on RSI (Divergence is when the price is making a new high/low and the RSI is not making a new high/low i.e., the peaks and troughs price vs. RSI pointing in different direction) That is sign of trend exhaustion and indicates FTSE 100 could have peaked.
However, if FTSE closes 7,409 the uptrend could extend to 7,578 possibly 7,670.
If FTSE slides back and closes below 7,244 Bears could get a second wind pushing the Index down to around 7,100
FTSE 250 is being rejected at the 200 daily SMA and resistance at 19,616. A correction should be expected. A correction that could test the medium-term falling (black) trendline and short-term rising trendline. If FTSE 250 closes below 18,493 selling pressure could accelerate pushing the Index lower.
However, there is no divergence on RSI indicating higher levels could be seen, possibly after a correction. If FTSE 250 closes above 19,722 20K is to be tested but there is room up to around 20,467.
The medium-term falling trendline has been broken and a close above 20,467 will reverse the medium-term bearish trend. See weekly chart.
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Uncover the shifting focus in 2024's FX markets towards growth resilience and relativity, away from bond yields and inflation stories.
Embrace the metal revolution on the commodity market in the coming year, with a focus on gold, silver, platinum, copper, and aluminum.
The gloominess of geopolitical conflicts and the repetitive nature of political agendas. What else does 2024 hold in store for us?
The disheartening cycle of unresolved geopolitical conflicts, the rise of polarizing political parties, and the stagnation of productivity.
Understand China's political landscape in Q4 2023 and the impact on counter-cyclical initiatives, with a focus on the pivotal Q1 2024.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Uncover the shifting focus in 2024's FX markets towards growth resilience and relativity, away from bond yields and inflation stories.
Embrace the metal revolution on the commodity market in the coming year, with a focus on gold, silver, platinum, copper, and aluminum.
The gloominess of geopolitical conflicts and the repetitive nature of political agendas. What else does 2024 hold in store for us?
The disheartening cycle of unresolved geopolitical conflicts, the rise of polarizing political parties, and the stagnation of productivity.
Understand China's political landscape in Q4 2023 and the impact on counter-cyclical initiatives, with a focus on the pivotal Q1 2024.