FTSE 100 rebounds, aiming higher – FTSE forecast

Intermediate
  • Global equity indices have rallied over the past 24 hours, as the broader “risk on” theme from latter September continues.
  • The more recent advance has been assisted by US President Trump leaving hospital alongside hopes for a new US economic relief package.
  • European stock averages have also benefited, recouping losses from late last week.
  • Here we focus on the short and intermediate-term upside for the future on the UK benchmark index, the FTSE 100.

FTSE 100 day trade outlook: Robust rebound and advance keep bias higher

Day trade update and view

A Monday push higher again through notable 5936/45.5 resistances, to build on Friday significant sell-off and equally significant rebound from within our flagged 5770/65 support, from 5766.5, to retain upside pressures from the latter September rebound from a bear move low at 5739.5 through various resistances (to 5936), to keep the risk to the upside Tuesday.

Day trade setup

  • We see an upside bias for 5949.5 and 5980; a break here aims for maybe 6040.
  • But below 5830/25 targets 5766.5/65 and opens risk down towards the bear move low at 5739.5.

FTSE 100 intermediate-term outlook

The early September push below key 5815.5 signalled an intermediate-term shift to a bear trend.

  • Downside risks: We see an intermediate-term bear trend to aim for 5651/45, 5325/16.5 and maybe towards 5000.
  • What changes this? Above 6267.5 shifts the intermediate-term bear trend to neutral; through 6512.5 to an intermediate-term bull trend.

Daily FTSE 100 Chart

ftse 100 chart

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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