FTSE 100 forecast stays higher into Bank of England Meeting

Intermediate
  • 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

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