FTSE 100 Thrusts from Support to Resistance
- US election reversal in dramatic fashion
- Pushes the FTSE 100 into overhead levels
- Not a fan of chasing here, short-term traders may look to short resistance levels
From diving off a cliff to back in the game, that’s the FTSE 100, that’s global equity markets in general. Markets can be very dramatic (after all they are controlled by people), the past 24-hours is a testament to that. To be certain, the Trump dump and reverse was something special to see.
With yesterday’s violent moves across the board – some more so than others – charts have become somewhat wrecked with massive candles engulfing several days or more of price action.
In yesterday’s trade the 100 came near the 11/4 low before ripping over 200 points to close out near the 6918/55 resistance zone we’ve had penciled in for some time. On Tuesday, we said it would be likely that it would struggle upon its first test of this critical zone, that not being the case as the FTSE continues to push on to new heights.
We’re looking to the top-side trend-line off the 10/11 peak (there now) as potential resistance. Beyond there minor resistance at 7006, then the twin highs on 10/24-25 at 7067 come into play. On the downside, we will look to the 6955/18 zone and today’s low at 6912. Below there no highly visible levels for us to operate off of at the immediate moment.
At this time, it is tough to buy into strong up-move without first seeing how it can handle resistance, making shorts look more attractive at overhead levels. Trades on the very short-term time-frames look most attractive still until we find better clarity on the broader front.
FTSE 100: Daily
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.