Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
Technical Analyst, Saxo Bank
FTSE 100 keeps rising in a more and more narrow trend trading around resistance at 7,578. A close above paves the road to the all-time highs at 7,687 but a new highs is not unlikely.
There is currently no divergence on RSI indicating higher levels.
If FTSE 100 breaks below its lower rising trendline a correction could unfold taking the index down to around 7,400-7,300. 7,420 is key support
FTSE 250 is struggling to close above key resistance at around 19,616 and the 0.786 retracement of the August -October sell-off. The Index and seems to be stuck in a range between that resistance and 19,000 forming what appears to be a symmetrical triangle pattern. Break out direction from the triangle could indicate whether FTSE 250 will extend its uptrend to around 20,467 or drop back below medium term falling black trendline and back below 18,493
There is no divergence on RSI indicating breakout could be to the upside and if RSI closes above its falling trendline the uptrend is likely to resume for FTSE250