FTSE 100 Technical Analysis 4 January, 2021

• FTSE 100 broke key resistance level 7450.00
• Likely to rise to resistance level 7550.00

FTSE 100 index recently broke through the key resistance level 7450.00 (top of the previous minor impulse wave (iii) from the end of December, as can be seen from the daily FTSE 100 chart below), intersecting with the resistance trendline of the wide daily up channel from the middle of September. The breakout of the resistance level 7450.00 accelerated the active impulse waves 3 and (v).

Given the clear daily uptrend and the improved sentiment about UK on lower Covid-19 cases – FTSE 100 index can be expected to rise further toward the next resistance level 7550.00 (target price for the completion of the active impulse wave 3).

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