FTSE Hits 12-Month High on Sustained Bullish Bias

Amidst mixed economic data and corporate earnings, the FTSE (LSE: UKX) experienced a marginal increase, closing at 7,931.98, marking a gain of 0.29% for the session and 0.31% for the week. Commodity-linked stocks, particularly in the energy sector, contributed to the index’s modest uptick, while telecommunications firm Spirent Communications saw a notable surge following a deal with Keysight Technologies. 

Economically, the UK’s GDP contracted by 0.3% in Q4 2023, aligning with initial estimates, while business investment rebounded by 1.4% in the same period. Despite concerns over a widening current account deficit, the UK stock market hit a 12-month high, indicating overall positive sentiment. 

Technical Analysis  

The 4-hour chart shows that the FTSE 100 is currently trading at 7,931.98, hovering slightly above a horizontal trading range. The price action sits comfortably above the upward-sloping 20-SMA (green line), 50-SMA (blue line), and 100-SMA (orange line), indicating a bullish bias. The 20-SMA’s position above the 50-SMA and 100-SMA reinforces this positive momentum. 

Looking ahead, a potential short-term trading opportunity lies towards the resistance level at 7,974.40, which coincides with the 13-month high. A sustained break above this level would confirm the bullish momentum, potentially paving the way for a test of the all-time high at 8,047.06. 

However, the rising RSI (67.52) is nearing overbought territory, suggesting a potential short-term pullback. Should the price action break below the trading range on significant volume, a move towards the 7,784.55 support level could materialize. A decisive break below this level could bring the 7,699.68 and 7,620.41 support levels into play. 


The confirmation of a recession may cause some concern, but the FTSE 100’s resilience and proximity to its all-time high paint a potentially bullish picture. The index is poised for a breakout; a surge above the 13-month high could propel it towards record territory. However, caution is advised as the RSI nears overbought levels. 

Sources: TradingView, Trading Economics, Office for National Statistics, Reuters, Morningstar. 

Piece written by Mfanafuthi Mhlongo, Trive Financial Market Analyst 

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