FTSE100 Again On Verge Of Collapse As Fed Mulls Rate Hike
The FTSE 100 managed to end the day with gains on Friday, up 0.90% or 56 points to close at 6,247.94, ending the week higher, despite the 4.7% Black Monday slump that made stocks tumbled around the world.
The recovery however, is not enough to erase August losses, as the index is halfway between its opening and the bottom set around 5,678. Investors are still concerned about a possible US rate hike in the US next September that may put worldwide equities under additional pressure.
As for the technical outlook, the daily chart shows pretty much the same that in all major worldwide indexes: the extreme oversold readings have been corrected, but the technical indicators lack upward strength well into negative territory, as the moving averages stand far above the current levels, far from suggesting the bearish potential is gone.
In shorter term, the 4 hours chart shows that the index recovered above its 20 SMA whilst the Momentum indicator heads higher above the 100 level and the RSI indicator hovers around 54, supporting some short term gains for this Monday.