The UK’s main stock index hit over a three-month high on Friday, clocking gains for the topsy-turvy month. Real estate shares led the way as interest rate-cut hopes held firm, while energy shares tumbled on demand concerns, capping intra-day gains. The index ended at 8,412.73, a 0.40% increase, and it’s getting close to reaching 8,475.45, a key level it hasn’t surpassed in a while. Today’s increase comes after a volatile period in which the FTSE 100 fell significantly to 7,998.19 earlier this month.
Today, the FTSE 100’s performance was driven by positive economic data and easing geopolitical tensions, which contributed to a more favourable trading environment. Investors’ risk appetite seems to be recovering, returning to equity markets with signs of stabilisation in global economic conditions.
The index is heading to the 8,475 mark. A consistent close above it could signal stronger bullish momentum going forward.
The index’s movement above its VWMA, currently at 8,400 points, suggests that buying interest has been sustained and is likely to continue if the upward trend persists. The Relative Strength Index has risen to 60, approaching overbought territory, but still indicates strong buying momentum without immediate signs of a reversal. Traders should look for a break above the 8,475 Resistance level, which opens the way for further gains towards the 8,500 level.
This post was last modified on Aug 30, 2024, 17:59 BST 17:59