Technical Update - FTSE 100 just above key support but for how long? FTSE 250 below key support
Kim Cramer Larsson
Technical Analyst, Saxo Bank
FTSE 100 closed just back above key support. But Mid-Cap index FTSE 250 closed below indicating lower levels
FTSE 100 dipped below its key support at 7K Friday but close above. Future points to an open above. However, selling pressure could soon return and if FTSE closes below 7K there it will be looking at next strong key support at around 6,800.
200 weekly Simple Moving Average (SMA) is an important Pivot for FTSE 100. A weekly close below will be a major bearish signal medium to long term. Since the Index closed above May 2021 it has dipped below 200 weekly SMA several times only to close above moving higher from there.
To reverse this bearish picture a close above 7.515 is needed.
FTSE 250 closed below its key support at 18,288. No strong support before at around 17,044. 1.618 projection of the correction here in Q3 is at 16,942.
Weekly RSI showing divergence but has broken below its rising trendline indicating lower levels are likely.
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