FTSE 100 Outlook: Short-Term Momentum and Long-Term Bullish Trend

The FTSE 100 has recently experienced a strong rebound following a short-term price pullback. This upward move was supported by a key technical support level combined with a touch of the lower Bollinger Band, signalling renewed buying interest. Bullish momentum is also reflected in the daily MACD moving towards bullish indication, which has turned higher, suggesting strengthening market sentiment.

Overall, these factors place the FTSE 100 back on track to maintain its long-term bullish trajectory, supported by several fundamental and technical reasons.

1. Strong Long-Term Support Trendline

A well-established, upward-sloping support line sits beneath current price levels. This trendline has been tested five times, each time pushing the index higher. Such repeated successful tests reinforce the long-term bullish structure and support the potential for the FTSE 100 to continue achieving higher highs into 2026.

2. Weekly MACD Continues to Show Bullish Momentum

On the weekly timeframe, the MACD remains firmly bullish, indicating that upward momentum is not just a short-term reaction but part of a broader trend. This supports expectations of continued strength over the medium to long term.

3. Self-Correcting Composition of the Index

The FTSE 100 maintains resilience through its self-correcting nature. The index only includes the top 100 companies listed in the UK. If a company underperforms—declining profits, weakening share price—it can be removed and replaced by a stronger performer. This system helps protect the overall index from prolonged downward pressure and supports more stable long-term growth.

4. Weak UK Exchange Rate Boosts International Earnings

A relatively weak pound continues to benefit FTSE 100 companies, many of which generate substantial revenue overseas. When foreign earnings are converted back into sterling, profits appear higher, supporting stronger share prices. This currency advantage continues to attract investors seeking exposure to internationally diversified UK companies.

Outlook for Traders and Investors

With both short-term bullish momentum and a strong long-term trend, the FTSE 100 currently appears favourable for traders and investors alike. Technical indicators, currency dynamics, and the index’s structural resilience all point towards continued bullish conditions.

For those seeking exposure to a stable, internationally diversified market index, the FTSE 100 remains a compelling option for both short-term trading and long-term investment strategies.