FTSE 100 forecast stays higher into Bank of England Meeting

  • The FTSE 100 Index chart has soared since late last week, benefiting from the certainty that has come from the UK general election result, with the 80-seat majority for the Conservative government.
  • In addition, the latest surge higher in the FTSE 100 index this week has been assisted by the Pound recoiling from above 1.35 in the wake of concerns regarding the potential still for a no deal Brexit that has emerged this week.
  • Furthermore, global stock averages remain solid from the positive prospects for global growth after the US-Sino trade deal was agreed last week.
  • Today the focus will be on the Bank of England to look for any shift in view since the UK general election result.

FTSE 100 technical analysis: Bullish tone intact

As on Tuesday, a Wednesday dip into and a rebound from within our 7500/7495 support area, (from 7498.5 and 7497), to retain bull forces from Monday’s very aggressive advance through key 7442 (for an intermediate-term bullish shift) and multiple resistances up to 7555, to keep risks still higher for Thursday.

  • We see an upside bias for 7568.5 break here quickly aims for 7577, then 7597.5/7600, maybe 7631 and key 7666.
  • But below 7497/95 opens risk down to 7443, maybe 7403/00.

FTSE 100 intermediate-term outlook

A mid-December surge through the key 7442 peak signalled an intermediate-term bullish shift.

Upside risks: We see an upside risk for and 7666 and 7750.

What changes this? Below 7194 shifts the intermediate-term outlook to neutral and below 7129.5 to an intermediate-term bear theme.

Daily FTSE 100 Index Chart

FTSE Chart 2019-12-19

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comments on this analysis

Your email address will not be published. Required fields are marked *

Latest Related News

FTSE 100 surge leads European stock averages higher

A positive follow through for the UK benchmark averages on Monday, as the FTSE 100 led the European equity indices higher (see the UK FTSE 100 Index Chart, the German DAX Index chart and the Euro STOXX 50 Index chart and commentary)This has reflected a positive follow-through for the UK market after last week’s election result, which saw the Conservative party secure an 80-seat majority.This… Continued

Dax, EuroStoxx and FTSE 100 forecasts

Dax Dax 30 December futures Dax topped exactly at 13180/13200 (sorry typo yesterday) but it is unlikely you had a chance to short before the sell off to 13110/090. Outlook is quite negative for today. 10 Dec, 2019 Dax it is worth trying shorts at 13180/13200 with stops above 13220. A break higher is a buy signal targeting 13250 before the recovery high at 13365/375.… Continued

An erratic week – risk off, then back to risk on

The trade talk prospects between the US and China were dealt a blow to start the first week of December as President Trump and other key players highlighted that the phase one trade deal might not be signed as quickly as markets had expected, with the President at one point suggesting a trade deal might not be done until after the next presidential election in… Continued

Macrowatch – US-China optimism aims stocks higher, further gains forecast

US President Trump spoke on trade at the Economic Club of New York on Tuesday with a positive view on a China trade deal, but also with threats of further tariffs if a deal was not made. Then Thursday evening saw Larry Kudlow (economic advisor at the White House) signal a deal with China was close. US share indices (the Dow, Nasdaq and S&P 500),… Continued

Equities stay solid through Trump speech

A much-hyped speech from US President Trump on the US-China trade talks Tuesday had muted impact as the major US equity averages probed higher hitting new all-time highs ahead of the speech.There was nothing particularly new from President Trump highlighting a phase one deal was close, but also stating that if an agreement was not reached there would be further tariffs.The US markets shrugged this… Continued

Forex Brokers in your location