As Brexit talks continue to hold the headlines, the FTSE100 index has also been keeping the bulls and bears on their best behaviour. Our FTSE latest technical analysis will likely give you some clues about the index’s performance on a medium to a long-term basis. As of late, the Footsie has been flirting with the highs. Up 0.10%, the Footsie seems to have recovered some of the losses caused by the extended Brexit talks and the closing of European borders with the UK after the new COVID-19 strain started raging through the UK last week, perked at 6,510.2.
In their latest technical analysis of the UK100 futures (another name for the FTSE100), our technical analysts showcase the bullish trend in the index. By the looks of it, the Footsie is en route to 6,564.93 (resistance). This appears to be a strong level to break, so chances are it might remain perked there over the medium term.
FTSE100 Price Performance
In the medium term, the FTSE futures are strongly supported on price dips, which brings the 6,6624.03 R3 level on the radar.
The daily chart shows that the Footsie is trading halfway between 6,500 and 6,600, on a falling price channel. In general, falling price channels are deemed as bullish reversal patterns. With this in mind, we can safely embrace the idea that the UK100 index futures contracts will likely rally to the top of the price channel later. The chart below shows exactly that.

But what happens near term? Those of you looking to maximise your short-term profit potential can also benefit. According to our FTSE latest technical analysis, the index futures could reach the 6,564.93 level near term, as shown in the 4-hour chart below.

The FTSE futures rebounded more than 130% since plummeting to record lows in March. At the time of writing, a bullish flag appears to be forming above 6,549.7, signalling that the uptrend is clear.
Short-term momentum is definitely bullish as the fast stochastic is accelerating. At the time of writing, the stochastic indicator points above 70, showing that the bulls are taking charge.
Furthermore, the MACD (moving average convergence divergence) generated a crossover BUY signal earlier. The current MACD histogram has formed an upward sloping trajectory, which points to rising prices.
In a nutshell
The FTSE100 futures appear to be trapped in the middle of a falling price channel and might test the 6,564.93 level. Judging by the 4-hour chart the bullish price pattern is beginning to take shape. What feeds this belief? Most of the FTSE100 members that suffered a massive blow from the pandemic, are slowly but surely picking up the pace on more than positive vaccine news. The best gainers part of the UK100 include IAG (British Airways) which is up 2.19%, Rolls-Roys (RR) which rose 2.80%, but also banking giants like Lloyds (LL) which gained 0.47% on the day, and many others.
So, in the short-term, the FTSE100 pattern broadly reflects the recent uplifting headlines that gave traders everywhere a shot in the arm. To take advantage of this opportunity, open an account with Trade360.
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