In today’s FTSE 100 update, we share the technical outlook for the equity index, with Tim Young, Day Trader for Ayondo, along with Nick Batsford, CEO at Tip TV.
FTSE 100: Daily chart
Young says it was surprising to see the FTSE fall on the back of ECB’s action yesterday. Looking at the technical charts for the FTSE 100, Young notes that the index looks bearish, with the MACD having crossed over and gone red. The RSI is pointing downwards, which further justifies the bearish tone.
While the daily charts signal a negative tone, the smaller time frame charts suggest a totally different tone, with the hourly charts remaining on the bullish side.
The FTSE index saw 5 consecutive red hourly candles, which led the stochastics and RSI into overbought territory, signalling for some upside relief ahead in the short-term.
Young further advices to take a look at different timeframes to ascertain the trend for the index, and adds that his overall view doesn’t remain bearish, but the equity index can be expected to end the year around mid-6400 are, and will face difficulty to climb above 6500 levels.