FTSE 100 Index Behaves Bullishly Amid Elections
On Friday, the FTSE 100 index rose by 0.4% to 8273 points, continuing its 0.9% rise on Thursday. According to Trading Economics, the centre-left Labour Party, as expected, won the parliamentary elections and secured a majority, ousting the Conservative Party after 14 years in power.
The Labour Party emphasised the importance of economic stability in its decisions and committed to strict budgetary spending rules.
Prime Minister Sunak conceded defeat, and the UK stock market positively received the official election results. As shown by the chart, the FTSE 100 index (UK 100 on FXOpen) has risen by approximately 1.9% from the July 2nd low.
However, the situation remains unfavourable for the bulls.
According to the technical analysis of the FTSE 100 (UK 100 on FXOpen) chart:
the market has formed an upward trend (shown in blue), but its relevance remains in question;
the BC rise constitutes 50% of the AB downward impulse a bearish sign;
in June, the price formed a range zone (shown with red lines), within which it currently resides.
In a favourable scenario, the bulls may break the upper boundary of the red range to return within the long-term channel.
Otherwise, the long-term blue channel will lose its relevance, and the Labour Party may experience a period of decline in the FTSE 100 index (UK 100 on FXOpen) early in their term.
Read more: https://fxopen.com/blog/en/oa-ftse-100-index-behaves-bullishly-amid-elections/
Text source: Forex Trading Blog
