The chop in the FTSE continues. We saw those levels mentioned previously between 6970-6920 do another great job and we are a decent amount higher today. The uptrend support line was pierced on a closing basis yesterday and we are back above it as it stands. I think we need to see it kick on above yesterday’s highs if we are to fully get behind a rally back to the highs. The weekly pivot it’s at 7024, the 10 SMA is at 7021 and yesterday’s high was 7013. If the market can overcome those levels then a fresh attempt at the highs is possible. I think it’s now or never for the push higher as the longer the index spends probing those key support levels the more chance it has of breaking down.
Visually the charts remain bullish so the preference is to buy on weakness, however for those that are in the bearish camp an intraday sell can be attempted at the trio of resistance levels mentioned above between 7013-7024, stops at 7060.
Visually the charts remain bullish so the preference is to buy on weakness, however for those that are in the bearish camp an intraday sell can be attempted at the trio of resistance levels mentioned above between 7013-7024, stops at 7060.