FTSE Technical Highlights:
- FTSE rallying hard off of March lows
- Watching September low, pair of trend-lines
- Trend still generally negative
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FTSE rally has resistance ahead to watch
The FTSE has put together a nice rally off the March lows, a significant area of support I’ve had my eye on as global markets looked ready to come off the hinges. The hard reversal may only prove to be corrective, though, in an ongoing decline towards much lower prices.
Looking higher, first up is the September low at 7222 followed by the underside of the February 2016 trend-line and possibly in confluence with that trend-line is another trend-line running down off the August high.
The trend since May has been down and with the macro RST topping formation still in effect, rallies are still viewed as sales and not the beginnings of something bigger. With that said, tactically speaking there may be some more upside from here until the aforementioned levels are met, but once they are, should momentum turn negative shorts may once again gain the upper hand.
Continue to keep an eye on the U.S. markets and whether they can stabilize or if this current bounce is only just that and not the beginning of a larger rally. There is reason to believe there is more downside there, and if this is the case then global stocks will continue to be under pressure.
FTSE Daily Chart (Watch resistance ahead)
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FTSE Weekly Chart (‘RST’ in effect)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX