FTSE 100 Index May Reach 8500
As shown on the chart of the UK stock index FTSE 100 (UK 100 on FXOpen):
It has risen by over 3% in three days;
It is near the record high set in May last year and may reach the psychological level of 8500 points.
Bullish sentiment has been supported by yesterday's news of GDP recovery according to media reports, the economy grew by 0.1% in November 2024 (compared to a previous decline of 0.1%), primarily driven by the dominant services sector.
Technical analysis of the FTSE 100 (UK 100 on FXOpen) chart shows that since mid-2024, the index has predominantly fluctuated within the 80008400 range, only briefly moving beyond it, which was accompanied by spikes in the RSI indicator.
The current RSI level indicates strong overbought conditions, making the FTSE 100 (UK 100 on FXOpen) vulnerable to a pullback. Should this occur, it will provide important insights into the strength of demand. This could be assessed by the indexs ability to remain above the 8333 support level and the lower boundary of the ascending channel (marked in blue).
Potential challenges for bulls are highlighted by MT Newswires, which report that analysts forecast higher inflation and weaker growth in 2025, amid expectations of a significant rise in labour costs.
Read more: https://fxopen.com/blog/en/oa-ftse-100-index-may-reach-8500/
Text source: Forex Trading Blog
