FTSE Technical Highlights:
- FTSE rally has confluent resistance in play
- Break above to lead to higher-high, next levels of resistance
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FTSE rally has confluent resistance in play
This week we’ve seen a solid thrust higher in the FTSE, which has it pitted up against a trend-line from August and recent highs around the 7k-mark. It’s been choppy but a strong push above resistance could get the index moving towards the next level of resistance in the vicinity of 7150/200.
A rally beyond 7200 would take off the table the notion of a corrective wedge continuing to develop since the December low, which is still the risk posed to the index as the trend remains firmly down since peaking in May. A corrective wedge would take some more time to fill out, perhaps a few weeks, before asserting itself as a strong possibility.
A drop from here will have underside trend-line support helping keep a possible lower high intact, and with weakness could come more of the same choppy price behavior the FTSE is often known for. For right now, leaning towards respecting resistance for what it is – resistance and see how the market wants to respond to it before drawing any further conclusions.
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FTSE Daily Chart (Resistance, possible corrective wedge)
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---Written by Paul Robinson, Market Analyst
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