The FTSE 100 index has recorded a mild upside move, rising 0.13% on the back of low volumes. This marks a third straight day in green territory for the FTSE 100 index, even though the price range indicates cautious trading as market participants await US inflation data. However, the advance means that the FTSE 100 index is on course to register its highest level in two months.
Standard Chartered, HSBC Holdings, BP and Shell were the top gainers on the FTSE 100 index. Bank stocks Standard Chartered and HSBC received a boost after Reuters quoted Bank of England Deputy Governor Dave Ramsden as saying there could be a need to raise rates further to arrest inflationary pressures. BP and Shell benefitted from rising crude oil prices.
The advance on the FTSE 100 index was capped by the 5.9% drop in shares of asset manager Abrdn, following poor H1 2022 earnings. The stock was hit by increased market turbulence following global inflationary trends and the situation in Ukraine. Abrdn tops the losers’ list, which also includes JD Sports Fashion (-4.46%), Entain (-3/55%) and Aveva Group (-2.85%) on the day.
The 7485 resistance mark is the price to beat for the bulls. Clearance of this barrier opens the door toward the 7557 price level, formed by the previous highs of 3 May and 9 June 2022. At this point, the evolving rising wedge pattern will face a test of its integrity. If the bulls break this resistance, it degrades the pattern’s upper edge and invalidates it. This scenario will see 7663 becoming the additional target to the north, being the site of former highs of 11 February and 21 April 2022.
On the other hand, if the bears reject the advance at 7485 or 7557, the lower boundary of the wedge becomes vulnerable. A breakdown of this boundary must be followed by a similar break of the 7378 support. This will make 7303 (10 June and 27 July lows) available as an initial target as the bears pursue a measured move toward the 7196 price mark (9 May and 19 July lows). Further price deterioration opens the door for a further decline, targeting the 16 June low at 7006.
This post was last modified on %s = human-readable time difference 17:37