Choppy action expected in the FTSE 100 ahead, says Tim Young, Day Trader for Ayondo, as he shares the technical outlook for the equity market index in today’s Finance Show, alongwith Nick Batsford, CEO at Tip TV.
Young starts by saying that he’s not as bullish as before on the FTSE 100 index, but isn’t bearish too. He expects the choppy price action on the index to continue ahead.
FTSE daily chart
Looking at the daily charts for the footsie index, Young says that the market sold off previously, but the current setup looks bullish, suggestive of gains ahead. He notes that the RSI has come out of oversold levels, and the MACD indicator has seen a positive crossover, which supports the positive bias.
FTSE Weekly chart
On the weekly chart, Young notes that the stochastics hasn’t yet reached the overbought territory. While the UK equity market index saw a selloff, it saw a strong bounce back later. The stochastics suggest there is some upside ahead in the index, and Young sees upside potential for 1-2 weeks in the beginning of 2016.