After two roller coast trading sessions this week, the FTSE 100 is rebounding this Friday on the back of mixed US Non-farm Payrolls data. The FTSE 100 had experienced a steep drop of more than 320 points on Wednesday and Thursday as a slew of poor PMI data created a risk-off environment which led to a selloff in global stock markets. However, the FTSE 100 was able to claw back some gains on Thursday afternoon. It is now consolidating on these gains and is currently trading higher as conflicting NFP results hit the newswires.
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FTSE 100 Technical Outlook
The weekly chart on the FTSE 100 showcases price action in a rising channel, within which there is a rising wedge which has fully resolved with the downside break seen this week. The downside measured move took the FTSE 100 all the way to the channel’s trendline, from where it has bounced on the day.
The FTSE 100 is now on its way back up to the horizontal resistance at 7209.48 (October 2017 and September 2018 lows). A break above this resistance will bring the next resistance level at 7360 in focus. 7574.80 (May and October 2017 highs) is also an important resistance level, as this area also interacts with the ascending resistance formed by the channel return line.
Failure to break the 7209.48 price level will present an opportunity to retest the channel’s trendline at 7054.76.