FTSE 100 Index Outlook as Constituents Rebound

The FTSE 100 index has been in a strong bullish momentum in the past few weeks. It rose to a high of £7,442, the highest point since September 13. The Footsie has risen by over 10% from its lowest level this year. As such, it has dropped by just 1% year-to-date, meaning it has outperformed its key global peers like the Dow Jones and DAX index.

Ocado share price leads gains

Most FTSE 100 constituents have done well in the past 30 days. Ocado share price has jumped by more than 102% in this period. This growth is mostly because of the recent decision by the company to enter the South Korean market by partnering with Lotte Shopping. The deal will see the company build several automated warehouses in the next few years.

It is also planning to expand in more southeast countries as it seeks to become the Tesla of warehouses. Ocado share price also surged after the merger agreement between Kroger and Albertson. Investors believe that the company will benefit from the agreement since it already has a deal with Kroger.

Rolls-Royce share price has jumped by 30% in the past 30 days, making it the second-best performing FTSE 100 constituent. This growth happened as the company’s business maintained growth. Key sectors like civil aviation, defence, and power have continued to do well. 

Other top performers in the FTSE 100 index in the past 30 days are Antofagasta, IAG, Anglo-American, and Fresnillo. On the other hand, only four companies have been in the red in the past 30 days. BAE Systems’ share price has retreated by 8.17% while DCC, Reckitt Benckiser, and British American Tobacco have pulled back slightly.

FTSE 100 forecast

The four-hour chart shows that the FTSE index has been in a strong bullish trend in the past few weeks. Along the way, it has formed an ascending channel shown in purple. It is now slightly below the upper side of this channel. The index has also rallied above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved below the overbought level.

Therefore, the FTSE 100 will likely continue rising in the coming days as buyers target the next key level at £7,500. A drop below the support at £7,320 will invalidate the bullish view.

FTSE 100