The FTSE 100 index is rising for the third consecutive day ahead of important trading updates and earnings announcements. The index is trading at £6,630, which is 5.15% above this month’s low of £6,307.
FTSE news: The FTSE 100 index is rising as investors react to the rising hopes that the US will pass a new stimulus package in the next few weeks. Joe Biden has pledged to spend about 1.9 trillion dollars to help support the recovery.
These funds will go towards households, companies, and states and local governments. The stimulus will be beneficial to the FTSE because many companies in the UK have operations in the United States.
The FTSE 100 is rising ahead of key earnings by companies like BHP, Vodafone’s Vantage Towers, Rio Tinto, BAT, Barclays, and NatWest. These are the companies that investors will be focusing on this week.
FTSE 100 technical outlook
The FTSE 100 index rose to an intraday high of £6,668 in the futures market. On the daily chart, the pair has moved above the important resistance level at £6,535. The price has also moved above the 25-day and 50-day exponential moving averages. It is also above the 61.8% Fibonacci retracement level.
Therefore, the index will likely continue rising as bulls target the next resistance at £6,963, which is the highest level this year. However, a move below £6,632 will invalidate this trend.
FTSE index technical chart