UK100 – A major breakout imminent?

Rally has momentum

The UK100 is closing in on 7,200 and approaching levels not seen since the start of the pandemic.

This isn’t the first time the index has eyed up this level in recent months but in the past it has failed to break through in any significant way – it briefly touched 7,217 a couple of months ago before reversing course – and each time a corrective move has followed.

This has left the FTSE trading between 6,800 and 7,200 since April but that could all be about to change.

While we may see some profit taking on approach, the MACD and stochastic suggest there’s plenty of momentum still in the rally that could carry it to levels not seen in 18 months.

If we do see some profit taking, the rising trend line below could be interesting support if the rally is going to continue. A move below this would suggest a larger correction may be on the cards.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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