Technical Update - FTSE 100 and 250 breaking higher. Uptrends seem strong
Kim Cramer Larsson
Technical Analyst, Saxo Bank
FTSE 100 has spiked higher to the 1.764 projection of the double bottom like pattern at 7,376. There is potential to reach 2.0 projection i.e., 200% of the pattern at around strong resistance at around 7,473.
Key support for FTSE 100 is 7,076. A close below and bear trend resumes.
However, RSI is above 60 with no divergence indicating higher levels. But if RSI closes below its rising trendline followed by a close below 60 selling pressure could resume strongly.
FTSE 250 cancelled top and reversal pattern last week extending uptrend. At the time of writing the Index is trading above resistance 18,494. If closing above 18,494 FTSE 250 is likely to test the falling (black) trendline and the 0.618 retracement at around 18,960.
A close above 18,494 will also result in RSI closing above 60 threshold i.e., showing positive sentiment supporting the uptrend picture.
If FTSE 250 slides back below the short-term rising trendline the support at 17,822 is likely to be tested. A close below and bear trend is unfolding
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