The UK’s FTSE 100 index finished the day close to unchanged at 6,969 in muted trading as end-of-month fireworks failed to materialize.
The Blue-chip FTSE 100 index had looked a sure bet to close the week above the important 7,000 level. Friday’s end-of-month trading day failed to deliver, adding a paltry +0.12% to the previous day’s close.
The FTSE 100 price has been on a steady climb during April, gaining +4.06% on the month. The U.K economy is somewhat ahead of the curve relative to its European counterparts thanks to its monumental vaccination drive.
34 million people in the U.K, around half the population, have now received at least one covid-19 vaccination jab. The upcoming easing of restrictions should see the FTSE 100 price continue to do well, as a wall of pent-up demand hits the high street.
Friday’s session was lackluster, to say the least. All of the major Global Indices finished close to flat in what was a surprisingly muted end-of-month session.
Typically month-end can provide volatile trading. Asset managers often use the last trading day to adjust their portfolios in the hope of gaining higher valuation prices for holdings, known as window dressing.
FTSE Price Outlook
The index has remained in a prolonged uptrend since the March 2020 lows, having returned 45% in the 13 months following. Whilst the FTSE 100 price performance has been ok; it has underperformed its U.S peers considerably.
Technicals point to a continuation of the rally. The FTSE 100 price remains above the three major Moving Averages, 50, 100, and 200 Day. The market is further supported by an ascending trend at 6,925, from the November low at 5,494.
I expect the market to push higher from here, with an initial target of 7,210. This move would see the FTSE 100 price connect with a rising trend from the June 5th high.
A break of the first support would put the 50-Day Moving average at 6,785 in play.