By Samir Al Khoury,
The British FTSE 100 index continues its upward trend for the fourth day in a row, recording 8,116 points today, a new record high. It is currently trading near the 8,100-point level, and it appears that the positive momentum will continue in the next stage, as this index has risen by about 5% since the beginning of the year until today.
The recent surge in British stocks is driven by a confluence of factors:
• The weakness of the pound sterling, as the pound declined against the dollar by about 5% since the peak of March 8, 2024, where it recorded 1.2893, to the bottom recorded two days ago, which reached 1.2299. It is currently trading near 1.24 levels.
• The headline consumer price index slowed on an annual basis in Britain, recording 3.2% in March, which is a lower percentage than the previous reading (3.4%), which encourages the Bank of England to start reducing interest rates this year.
• Some British stocks from various sectors outperformed the FTSE 100 index, such as AstraZeneca, Rolls-Royce, HSBC, BP, and Shell.
Several technical indicators suggest that the FTSE 100 index may continue its upward trajectory:
Moving Averages: The 20, 50, and 200-day moving averages are aligned in an upward trend, reinforcing a bullish outlook.
Relative Strength Index (RSI): The RSI is at 69, approaching the overbought zone, indicating strong upward momentum.
MACD Indicator: The Moving Average Convergence Divergence (MACD) indicator shows the blue line exceeding the orange signal line, a positive signal for continued upward movement.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.
Taurex is the trading name of Zenfinex Global Limited, Stochastic Africa SL Ltd, Zenfinex Global LLC, and Zenfinex Limited.
Zenfinex Global Limited is registered in the Republic of Seychelles with registration number: 8428731-1 and is regulated by the Financial Services Authority of Seychelles (license number SD092). Its registered office address is F20, 1st Floor, Eden Plaza, Eden Island, Seychelles.
Stochastic Africa (SL) Limited is a company registered in Sierra Leone with Company Number: SL270319STOCH05271 and is licensed by the Bank of Sierra Leone under license number BSL/SAL/2023 and with the registered office at 148D Wilkinson Road, Freetown, Sierra Leone.
Zenfinex Global LLC is a company registered with the Financial Services Authority in Saint Vincent and the Grenadines under registered number 138 LLC 2019. Its registered office is Hinds Building, Kingstown, Saint Vincent, and the Grenadines.
Zenfinex Limited is a company registered in England and Wales under registered number: 11077380. Authorised and regulated by the Financial Conduct Authority under firm reference number 816055. Its registered office is 4th Floor, 4 Eastcheap, London, EC3M 1AE, United Kingdom.
*All trading involves risk.
