Technical Analysis – UK 100 index powers back as bullish forces linger
Short-term momentum indicators are also reflecting a positive bias as the RSI is hovering above its 50 neutral mark. Moreover, the MACD is found above zero and its red signal line, which indicates that the recent positive momentum might be gaining further ground.
Should the bulls maintain control, the January 2020 at 7,689 might be the first line of resistance, before buyers eye the July 2019 high at 7,729. A decisive move above the latter could further strengthen the index’s positive momentum, sending the price to test its August 2018 high at 7,791.
On the flip side, initial support might be found at the region which includes the 50-day SMA and the 7,400 hurdle, before sellers shift their attention towards the 7,225 obstacle. Crossing below the latter might open the door towards the 200-day SMA currently at 7,185. A decisive move below this point could turn the fortunes around for the index, opening the door towards the November low at 6,970.
In brief, the overall outlook for the index is bullish amid successive higher lows. For sentiment to change, sellers would need to break below the 200-day SMA.Latest News
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