- Summary:
- The FTSE 100 index is up for a second straight day in the Asian session. However, more gains could be limited as evidenced by the bearish flag pattern
The FTSE 100 is set for a higher open today as Boris Johnson prepares to ease lockdowns in England. The index is also rising as the UK maps a strategy to start vaccinating people in the coming month. It has added 0.65% in the futures market on top of the 0.30% gains made on Friday.
According to The Times, the prime minister will announce new measures to reopen the economy this week. That will see businesses lke restaurants, bars, and other non-essential businesses start operating as the number of new cases continues to decline. This reopening will be a positive factor for companies in the FTSE 100 index.
The index is also rising ahead of a new vaccination plan in the UK that is set to start in December. The country has already secured millions of doses from companies like Moderna and Pfizer.
Meanwhile, the FTSE index will also react to the flash manufacturing and services PMI numbers scheduled for 9:30 GMT.
FTSE 100 technical outlook
On the four-hour chart, the FTSE 100 has been on a slow upward trend in the past few days. It is now trading at £6,385, which is slightly higher than last week’s low of £6,315. It is also slightly above the 25-day weighted moving average. Notably, the index has formed a bearish flag pattern.
Therefore, this week, there is a possibility that the index will resume the downward trend and possibly move below £6,300. On the flip side, a move above the upper side of the flag at £6,400 will open doors to the index reaching this month’s high at £6,465.
FTSE index technical chart
