FTSE 100 Speaking Factors:
- UK double-digit inflation raises issues of a deeper recession
- FTSE 100 threatens 7,000 as financial institution shares take pressure
- GBP/USD struggles to carry onto current positive factors threatening UK shares
FTSE 100 Technical Evaluation
The UK FTSE 100 has failed to carry above technical resistance after one other double-digit inflation print raised fears of a deeper recession.
With each political and macroeconomic turmoil weighing on the British Pound (GBP), the most important inventory index has fallen again beneath prior assist turned resistance at present holding on the key psychological degree of seven,000.
After a pointy decline from the September excessive of seven,514, a rebound off 6,707 allowed FTSE to climb larger earlier than reaching the 78.6% Fibonacci retracement of the 2009 – 2018 transfer holding as further resistance at round 6,952.
With a slender zone of confluency forming between 6,850 and seven,000, worth motion continues to hover across the 200-week MA (shifting common) at 6,948 highlighting the significance of this zone.
FTSE 100 Weekly Chart
Chart ready by Tammy Da Costa utilizing TradingView
As costs stay encapsulated between technical assist and resistance, the four-day rally has come to a halt. With an inflow of sellers and rising recession fears weighing on sentiment, the subsequent huge zone of assist continues to carry at 6,850 with a break beneath opening the door for six,800.
FTSE 100 Every day Chart
Chart ready by Tammy Da Costa utilizing TradingView
FTSE 100 Key Ranges
| Help | Resistance |
|---|---|
| S1: 6,900 | R1: 6,952 |
| S2: 6,850 | R2: 7,000 |
| S3: 6,707 | R3: 7,092 |
FTSE 100 Consumer Sentiment
On the time of writing, retail dealer knowledge exhibits that 67.51% of FTSE 100 merchants are net-long with the ratio of merchants lengthy to quick at 2.08 to 1.The variety of merchants net-long is 1.46% larger than yesterday and 0.30% decrease from final week, whereas the variety of merchants net-short is 1.56% decrease than yesterday and seven.87% decrease from final week.
We usually take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests FTSE 100 costs might proceed to fall.
Merchants are additional net-long than yesterday and final week, and the mix of present sentiment and up to date modifications provides us a stronger FTSE 100-bearish contrarian buying and selling bias.
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and observe Tammy on Twitter: @Tams707
DailyFX supplies foreign exchange information and technical evaluation on the traits that affect the worldwide forex markets.
