What’s inside:
- FTSE 100 trading has turned choppy, but...
- Edge appears to have turned slightly in favor of sellers
- Short-term support and resistance levels outlined
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The FTSE 100 is showing a bit of indecision here after breaking free on Thursday from a period of congestion. Last week, the index quickly traded lower out of the wedge formation we were watching, but the initial dive was short-lived.
Conviction level is low right now, with choppy price action dominating the current trading environment. The lack of a clean technical backdrop and catalyst is making it difficult at the moment to garner a high level of confidence. Risk isn’t particularly favorable for either side of the market, but from where we sit it looks as though the advantage lies with sellers at the moment.
Looking in a little closer, it appears a lower high could be developing after a couple of failed attempts to trade higher into resistance – triangle congestion, former neckline.
Short-term technical levels/lines to watch on the downside are the trend-line rising up from the Feb 2 low, then just beneath there the Thursday low at 7192. A drop below last week’s swing low will bring focus to the longer-term trend-line rising up from the June low around the 7140 mark at this time. On the top-side, the footsie needs to trade through the thicket of resistance in the 7250/320 vicinity to help clear a path for higher prices.
FTSE 100: Hourly
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---Written by Paul Robinson, Market Analyst
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