What’s inside:
- FTSE 100 drifting higher in absence of a reason for sellers to show up
- Record highs around the corner at 7100+
- Economic calendar light this week
Q1 2017 Forecast Now Available – FX, Indices Commodities
The FTSE 100 finds itself drifting higher in the absence of a reason for market participants to sell. The low volatility holiday trading environment will be with us for a few more trading sessions. Today, the UK index is trading around peaks created on 10/24-25, where the market found sellers to the point at 7067 on both days. Only viewed as minor resistance with record highs not far away at over 7100. There are two levels, one is the closing record high created in April 2015 at 7104, and the other is the intra-day record high notched out in October at 7129.8. It may not happen until the calendar flips to January, but it looks likely that thin band of record levels will get tested if not broken altogether.
The market continues to move further away from support levels we’ve had penciled in. The primary line we are focused on is the trend-line rising up from the June lows. This trend-line, while briefly breached earlier this month, is considered a steadfast line of support given the number of touches in November and ability to hold on 12/12-13. The 11/10 spike high right around the 7000 mark is support to a lesser degree, and could possibly align with the June trend-line, creating confluence.
FTSE 100: Daily
Created with Tradingview
As far as data releases are concerned, nothing significant this week. There are a couple of ‘high’ impact releases out of the U.S. during London hours, but not expecting to see any major reactions; today at 15:00 GMT is Consumer Confidence, Thursday at 13:30 Advanced Goods Trade Balance. Full calendar here.
—Written by Paul Robinson, Market Analyst
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