Index in focus: FTSE 100 at post-pandemic highs

The FTSE100 closed yesterday at its highest level since the pandemic began - where will the widely-followed index go next?

Uptrend 1

The UK’s most widely-followed index closed last week at its highest level in nearly two years, despite the lingering threat of political turmoil as a beleaguered Prime Minister Boris Johnson continues the fight of his political career.

After a widely-panned apology to the House of Commons last week for attending a party in defiance of his own COVID regulations back in May 2020, BoJo is on the proverbial ropes; according to a poll conducted Tuesday, fully two-thirds of UK voters believe that the PM should resign. Senior Conservative leaders are split on whether to continue to support Johnson, with many sitting on the fence until the results of an inquiry into the situation are announced in the coming weeks.

Despite the political turmoil, the FTSE 100 has kept chugging higher, closing Monday at its highest level since the pre-pandemic days of February 2020, though it did pull back a bit today amidst the general risk-off tone. From a technical perspective, the index is riding a 6-week bullish trend line higher and has yet to see a bearish divergence with the 14-day RSI, suggesting that the uptrend remains healthy and could well extend further:

FXFTSE10001182021

Source: TradingView, StoneX

See our full FTSE 100 trading guide!

Assuming political chaos doesn’t derail the rally, the next levels of resistance to watch will be the 2020 high near 7690 and significant previous resistance at 7800, which effectively marks the record high in the index outside of a two-day false breakout back in May 2018. For this week, a break below the near-term bullish trend line would hint at a potential reversal from the rising wedge pattern and open the door for a retracement toward previous-resistance-turned-support at 7390.

How to trade with FOREX.com

Follow these easy steps to start trading with FOREX.com today:

  1. Open a Forex.com account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account