FTSE 100 Rejected By Confluence of Resistance

FTSE 100 has consolidated near the session’s high after the fourth consecutive day of gains. The 100 DMA and 100 WMA have stopped the bulls from winning more ground.

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On the data end, the number of mortgage approvals for house purchases in UK last month fell to 42,300 from 42,500 in August.

“So far, the strength of the rise in the UK Finance data has not been matched by the industry-wide figures from the Bank of England. Indeed, Bank of England figures show mortgage approvals down by 0.9% y/y in August. As a result, the relative strength of the UK Finance data probably reflects lenders taking market share from each other, rather than an increase in the overall provision of credit,” noted Capital Economics.

Still, the FTSE 100 trades comfortably above the descending trend line that connects July and September highs. In order to continue further, the bulls will have to push through the 100 DMA and 100 WMA resistance first. The resistance zone of 7331 – 7337, defined by two key moving averages, now constituted crucial resistance for the bulls.

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