FTSE100 Breaks Five-Week Winning Streak

The FTSE100 (LSE: UKX) closed the prior week in the red after five straight weeks of gains which saw the index add 7.98%. A return to risk-on sentiment was partly driving the slight decline, driven by a robust U.S. housing market and labour market, which saw unemployment decline slightly.

This week, traders will turn to the U.K.’s services PMI to draw conclusions on the country’s economic environment after manufacturing PMI data came in higher than expected. In addition, risk sentiment will likely be defined by the Federal Reserve’s interest rate decision, while the Euro Area is also expected to decide on their rates.


The FTSE100’s uptrend is now under threat, following the first weekly close in the red after five consecutive weeks of gains. Support and resistance are located at the 7203.50 and 7947.00 levels, respectively.

The 100-day moving average will likely play a pivotal role as a dynamic support level in the medium term. If bullish traders uphold the index above the 100-day moving average, they will probably aim for resistance at the 7947.00 level.

Alternatively, if bearish traders enter the market and apply pressure on bulls, a break below the 100-day moving average could indicate a shift in market sentiment. Bears will likely earmark the 7203.50 level as a point of interest if they undo the current bullish sentiment.


Aside from the Economic Calendar, the FTSE100 will likely build up momentum in one direction, given the earnings lineup this week. Slightly under half a trillion of the FTSE100’s market capitalisation reports earnings this week. If earnings generally point northward, the FTSE100 could be supported as traders pile into the market on the back of likely gains.

Sources: Reuters, TradingView