Chart Of The Day: FTSE Breaks Out 

 | Oct 15, 2021 13:34

This article was written exclusively for Investing.com.

Global stocks have surged back higher this week, with the FTSE reaching a new high for the year. The index has not peaked above last year’s high yet, so in that regard it is still miles behind its US and European counterparts. It clearly has some catching up to do, and this week’s break out suggests it may go on to close the gap down a little at least.

The FTSE is a commodity-heavy index, so the big gains we have seen for crude oil and copper prices have helped energy stocks and miners. Meanwhile, banks have risen along with yields in recent times, as investors have become optimistic about a steady economic recovery and look forward to mild policy tightening from the Bank of England. Earnings have been decent. Had it not been for worries over inflation and supply-chain disruptions, we may have already seen record highs for the FTSE given accommodative central bank policies around the world and a sharp economic recovery from the pandemic. 

As mentioned, the index could be on the verge of a bigger recovery, as this technical development suggests: