The FTSE100 futures contract seems like it's shaping up for a potential move higher on both the daily and 4 hourly timeframes.

Taking a look at the FTSE100 on the futures ticket as it seems like it’s shaping up for a potential move higher. The index has found itself rangebound in the channel drawn on the chart, with the base support at 7, 683 and the resistance at 7, 815. A dip below 7,683 could see a further retracement towards 7, 620-7, 630, whereas a break above 7, 815, may see a move higher towards the green trendline. Or respectively, 7, 890-7, 900. The technical indicators are both currently positive with an RSI reading of 55. The daily timeframe also highlights the setup of a base with support for a move upwards, however, this could only be due to speculation and optimism carried from the US and Asian markets. Any positive movement is not guaranteed and investors/traders should always be aware of the risk-to-reward ratio, as well as placing stop losses as part of their trading regime. 

 

(Source: IG.com Daily timeframe)