FTSE Technical Highlights:
- FTSE broke above solid resistance, now turns into source of support
- Trend-line, top of channel coming into focus as next target of resistance
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FTSE broke above solid resistance, now turns into source of support
The FTSE has put together a nice rally the past few sessions, stringing together 8 consecutive positive days up to today. Monday’s pop put the index above the confluence of resistance (price/200-day) penciled in as key last week.
The breakout has former resistance now turned into support as per usual, with the 7260/30 area in focus on a dip. A t-line from late Jan is also running right in the vicinity. On weakness a hold of support will keep the technical picture clean and moving along inside the channel from the December low.
Looking higher, resistance doesn’t clock in until the trend-line off the record high, about another 130 points or so from current levels. The top of the channel may be in confluence depending on the timing of when the market gets up to that point, if it does.
From a tactical standpoint, the FTSE could use a breather and today may be the beginning of taking a rest. A small dip/consolidation on or above support will do the index some good and may help create a good base for a continued run to the aforementioned resistance lines.
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FTSE Daily Chart (Support below, t-line/channel resistance above)
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---Written by Paul Robinson, Market Analyst
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