FTSE 100: Pivots at Support, Working on Bull-flag Breakout
- The FTSE 100 was closed yesterday in observance of public holiday
- Index turning higher from confluence of support
- Attempting to trade higher out of bull-flag formation
Yesterday, the FTSE 100 was closed in observance of the ‘Late Summer Bank Holiday’. Nothing was missed by the traders in London, as global markets were quiet and trading volumes low. To start off the day, the FTSE is relatively quiet, currently trading near the unchanged line.
The UK index (UK100) is in the process of turning higher from the confluence of support we noted on Friday; the lower parallel extending back to early July along with the late July peak. Friday’s low could turn out to be the low pivot of another lower high within the ongoing sequence of higher highs and higher lows.
Additionally, in the absence of sellers, a bull-flag has been forming as the market gradually falls back into the intersecting levels of support. Overall, this is construed bullish until support and the pattern are broken.
A push above the top-side trend-line of the bull-flag formation will help pave the way for a move back to the 8/15 high at 6956. However, with the dog days of summer upon us, conviction is low in the notion we will see a powerful move develop, in either direction, as many market participants remain away from their desk.
FTSE (UK100) Daily
---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX.
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