The FTSE 100 Index has pulled back in the past few weeks after a series of weak UK economic data and as geopolitical risks rose. The index, which tracks the biggest UK companies, dropped to £8,800 on Thursday, a few points below the year-to-date high of £8,893.
UK stocks will be in the spotlight as the Bank of England (BoE) delivers its interest rate decision on Thursday. These numbers come a day after a report showed that UK inflation remained above 3.4% in May, higher than the BoE’s target of 2.0%.
Therefore, while the UK labor market has worsened, the bank is concerned that more interest rate cuts will stimulate inflation in the country.
The FTSE 100 Index has also pulled back as concerns about geopolitics remain. Media reports suggest that Donald Trump has decided to bomb Iran’s nuclear program, risking a widespread crisis.
This article conducts a technical analysis on top FTSE 100 shares, including BT Group (BT.A), Rolls-Royce (RR), and Rolls-Royce Holdings (RR).
BT Group share price forecast
BT Group, one of the top telecommunication giants in the UK, has been in a strong bull run in the past few months. This rally happened after it formed a giant 95.68p between 2023 and 2024. It surged and moved above the neckline at 142,40p, the highest swing in April 2023. A double-bottom pattern is one of the most bullish patterns in technical analysis.
BT Group share price formed a golden cross pattern as the 200-week and 50-week Exponential Moving Averages (EMA). A golden cross is one of the most bullish patterns in technical analysis.
Further, the Relative Strength Index (RSI) and the Average Directional Index (ADX) have all continued rising in the past few months. The RSI has moved above 70, while the ADX moved to 23, a sign that bulls are gaining strength.
Therefore, the stock will likely continue rising as bulls target the next psychological point at 250p. A move below the support at 170p will invalidate the bullish view.
Rolls-Royce share price analysis
The weekly chart shows that the Rolls-Royce stock price has been in a strong rally in the past few years, making it one of the best-performing FTSE 100 Index shares.
This surge happened because of the ongoing civil aviation demand. Just recently, we reported that Chinese carriers are preparing a large order for Airbus planes, many of which will use Rolls-Royce engines.
Rolls-Royce’s defense business is also seeing more demand as geopolitical tensions rise, while its power business is benefiting from the AI sector.
The weekly chart shows that the Rolls-Royce share price has jumped above all moving averages, while oscillators point to more gains. As we have written before, there are signs that the RR stock will jump and hit the resistance at 1,000p soon.
IAG share price forecast
The weekly chart shows that the IAG stock price surged from a low of 1.0275 in 2022 to a high of 4.405p in February. It then pulled back and retested the important support level at 2.540p, its highest point in March 2021. This means that the stock did a break-and-retest pattern, a popular continuation sign.
IAG share price is about to form a double-top pattern at 4.405p, its highest point in February. A double-top pattern will point to more downside as long as it is below the double-top point at 4.405p.
On the positive side, a break above the double-top point at 4.40p will invalidate the bearish view and point to more gains, potentially to 5p.
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