FTSE 100 Still Looking for Direction at the 6400 Level
The FTSE 100 is trading 0.30% higher at 6370 but the market is still looking for a catalyst to get above the stubborn 6400 level. The index first tested the resistance on the 11th November and has traded in a tight range since then.
Stocks are being buoyed by vaccine hopes and the end of lockdowns. U.K. Prime Minister Boris Johnson has expressed his plans to ease coronavirus restrictions in December. The country’s Chief Medical Officer also said the country could be back to normal operations by Easter. His comments came on the back of news that Oxford University’s announcement that their vaccine was 90% effective.
Traders are hoping for an announcement on a Brexit deal in the near future as last-minute talks continue. A deal was said to be 95% complete ahead of the weekend as the two sides iron out differences in fishing and the “level playing field”. The latest obstacle is said to be meat exports, which could affect Ireland, but a deal will have to secured imminently to allow approval by U.K. and EU politicias, alongside the EU27 nations.
FTSE 100 Technical Outlook
The FTSE 100 is still supported underneath the 6400 level but the index needs to see a close above that level to spur further gains. There is still the chance that a headline or indicator could see a bearish retreat and traders should tread carefully here. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.