FTSE100 Eyes 6254 As Bulls Gain Strength
The FTSE 100 closed 151 points higher at 6,109.01, as market sentiment improved following FED’s chair late Thursday statement. Commodity-related equities advanced after being under pressure for most of the week, although the advances were quite limited compared to its latest decline.
Rip Tinto gained 1.44%, and BHP Billiton gained 0.74%, Glencore, however, closed down 1.4% ending the week 22.8% lower. The daily chart shows that the index closed below its daily high of 6,136 and below a mild bearish 20 SMA, whilst the Momentum indicator lacks directional strength around its mid-line, and the RSI indicator aims higher around 44, limiting the upside.
In the 4 hours chart, the index remains below a bearish 100 SMA, but above a horizontal 20 SMA, whilst the Momentum indicator edges higher above 100 and the RSI indicator hovers around 51. The immediate resistance comes at 6,150, the 38.2% retracement of its latest weekly decline, and it will take a clear break above it to confirm a bullish continuation for Monday, up to the 6,245 region.