FTSE 100 Price, Chart and Analysis:
- FTSE stuck in a rut for now.
- Technical and fundamental drivers converge.
The FTSE 100 has been stuck in a sideways channel for the last few months as the twin themes of Brexit and COVID-19 remain in charge of price action. The UK big board has reclaimed around 40% of the COVID sell-off – a much smaller percentage than other peers – and will remain rangebound until one of the two fundamental themes changes.
The technical view of the FTSE 100, however, is starting to look more interesting as the recent sideways move has forced all three moving averages to converge near current price action and the 38.2% Fibonacci retracement. This cluster of technical indicators is likely to force a move in the short-term, as low volatility market conditions when faced by a potentially high vol fundamental outlook will shake out loose longs/shorts and