Can the FTSE100 index reach new all-time highs before 2024 ends?

The FTSE 100 index has been gaining momentum over the past few weeks, setting the stage for a potential breakout to the upside. As of today, the index is trading around 8,360, drawing traders’ attention to the critical resistance level at 8,400 and beyond.

Key Resistance Levels: Can FTSE Break Through?

On the daily chart, the FTSE has made three previous attempts to surpass the 8,400 resistance level, each time facing a strong rejection that triggered sell-offs. The most recent downturn pushed the index to just below 8,000 for the second time since August. However, a 4.5% rally over the past two weeks signals renewed bullish momentum.

Technical Indicators Show Strength

Both the MACD and RSI are displaying strong bullish signals, suggesting the rally could extend further. If the index breaks and closes above the pivotal 8,420 level, it would likely be interpreted as a bullish breakout, with traders eyeing the all-time high of 8,479 as the next target.

Key Levels to Watch: Support and Resistance

On the downside, 8,236 serves as near-term support. A break below this level might indicate underlying weakness, potentially prompting UK investors to shift their focus to other markets, such as the US, for better returns as the year progresses. Should the index dip below 8,236, traders may turn their attention to 8,152 for additional support levels.

What’s Next for FTSE 100?

The FTSE 100’s performance in the coming sessions will likely hinge on its ability to break through key resistance levels. A decisive move above 8,420 could spark bullish momentum, while a dip below 8,236 may lead to further downside pressure.

Stay tuned for updates on the FTSE 100 as it approaches critical technical levels that could determine its direction heading into the end of the year.