The possible 'sympathy bounce' towards 7300 highlighted last week played out nicely. Whilst we're on guard for bearish momentum to return as part of the seasonal 'sell in May and go away', we retain a bullish bias over the near-term.
Prices have since pulled back from those highs and price action on the intraday chart appears to be corrective, in the form of a falling wedge (a bullish continuation pattern). It's forming a base around the 38.2% Fibonacci level and above the 50% retracement line, whilst RSI (14) is forming a bullish divergence.
- From here, bulls could consider bullish setups above 7226 in anticipation of a move higher
- The bias remains bullish above 7220
- The wedge pattern suggests an upside target near the base of 7300
Prices have since pulled back from those highs and price action on the intraday chart appears to be corrective, in the form of a falling wedge (a bullish continuation pattern). It's forming a base around the 38.2% Fibonacci level and above the 50% retracement line, whilst RSI (14) is forming a bullish divergence.
- From here, bulls could consider bullish setups above 7226 in anticipation of a move higher
- The bias remains bullish above 7220
- The wedge pattern suggests an upside target near the base of 7300
