As with the DAX 30, the FTSE 100 also breached its Tuesday’s high, triggering a string of buy orders in a classic bullish breakout signal.
The technical trend is now bullish above yesterday’s low of 6225 and traders that went long on the market are probably having their stops just below this level. As the technical trend is bullish above 6225, it would be natural to expect a pullback to the breakout level of 6279.50 to be treated as a buying opportunity. In fact the full 6250-6279.50 is a buy-zone according to Fibonacci studies. The only thing traders are concerned about is that price does not break yesterday’s low.
The next resistance level and profit target for short-term traders will most likely be the November 11 high at 6327. If this level breaks, the next resistance level will be the November 9 high of 6380.
Suggested reading: US Dollar Declines as FOMC Minutes Bring Nothing New to the Table
Data on Tap
U.K. Retail sales is on tap but not expected to move the FTSE 100 and neither are the ECB minutes as the bank is now running on autopilot ahead of its December 3 rate meeting, much like the FED.
In its minutes published yesterday evening, the Fed did not give any hints about backing off from a December rate meeting, but they did emphasize rate hikes as being both gradual and data dependent. This is probably the reason why stock markets were bid, given that gradual rate hikes should provide less stress to the stock markets.
The most market moving data on tap should be firstly U.S. jobless claims, followed by the Philly Fed index, and the U.S. leading indicator. The technical trend of the FTSE 100 should remain bullish unless the data print is worse off than expected.
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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