Will the FTSE 100 break to a new 16-month high?

The FTSE 100 stock market index fell out of favour many years before the pandemic due to Brexit. However, many analysts are pointing to the fact it is one of the most undervalued stock indices in the world right now.

The index itself is not even trading where it was before the pandemic started and has not gone on to record highs like most European, US and Asia stock market indices. It seems like that could change.

The price is hovering very close to a 16-month high and weakness in the British pound may help push this pair through this technical level of resistance.

Source: Admirals MetaTrader 5, FTSE100, Weekly – Data range: from Mar 30, 2014, to Aug 10, 2021, performed on Aug 105, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

If the price can break through the 7222 level, then there could be a clear run to the all-time high around 7900. This would represent a near 10% move higher. The weekly chart has already rejected previous support of the swing high of January 2021.

It’s certainly an index to watch with many others trading at elevated levels.

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