Considering this, it’s no wonder the price has lacked direction recently. Although, once the market has time to digest the upcoming data, the FTSE should start to move. Here are some important technicals to consider as we head into the critical end of the week.
FTSE Index technical outlook
Clearly, the FTSE 100 has been trending higher over the last year, gaining around 14% in the last 12 months. Although, this performance pales compared to the Dow Jones, which has added 33% in the same period, and the Dax’s 20% increase.
Presently, the index is attempting to regain the support of an ascending trend at 7,028. However, for the last six days, the trend line has rejected the price.
If the FTSE 100 advances beyond 7,028, the 50-day moving average at 7,060.40 is the next resistance level. A descending trend line follows this at 7,080. Furthermore, above 7,080, the bulls can make a case for a return to 2021’s high at 7,215.30.
On the downside, the 100-day moving average at 6,976.40 is the first area of technical support. And should the price fail to remain above the 100 DMA, the 19th of July low at 6,795.90 follows. After that, the 200 DMA at 6,707 becomes a logical target for the bears.