FTSE short-term technicals favour the upside - FXStreet

UK stocks advanced, with the Footsie ending the day 2.87% higher at 6,030.32, bolstered by the commodity-related sector. A strong recovery in oil prices was the kick start for the rally, later fueled by Glencore's announcement that the company is refinancing an $8.34 billion loan facility, which sent it 16.56% higher by the close. Anglo American advanced 17.62%, while Royal Dutch Shell jumped 4.57%.

FTSE technical view

“The index holds firm above the 6,000 level ahead of the Asian opening, for the first time since February 1st, and in the daily chart, the technical indicators have crossed their mid-lines towards the upside, maintaining strong bullish slopes”, said Valeria Bednarik, chief analyst at FXStreet. “The 100 DMA offers a strong resistance around 6,140, and further gains beyond it should lead to a more sustainable advance in time”.

“In the 4 hours chart, the technical indicators are turning slightly lower in overbought territory, which is not enough to confirm a downward correction, while the index is well above its moving averages, in line with additional gains for this Thursday”, she added.

Support levels: 5,922 5,945 5,909. Resistance levels: 6,093 6,140 6,197.