- 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
