FTSE Technical Outlook – Slowly Finding its Footing, Levels & Lines to Watch
FTSE Technical Highlights:
- FTSE bounce from oversold so far uninspiring
- May see higher prices from here, could stay choppy
- Strength watch ~7370, weakness, 7220, Feb 2016 t-line
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FTSE bounce from oversold so far uninspiring
A week ago when we last took a look at the FTSE, we noted that the key-reversal bar amid oversold conditions was viewed as likely to lead to a bounce. So far, gains have been effectively limited to one day worth of rallying, the first day out of the reversal.
A further rebound will keep the footsie intact for now, with resistance first clocking in around a slope located near 7370. This may be the first area to look for renewed weakness back towards the reversal-day low at 7220 and long-term trend-line support. A breakdown below 7220 and the Feb 2016 trend-line is seen as a catalyst for igniting another round of selling. For now, trading is expected to remain choppy.
The Feb 2016 trend-line is an important one, and really the last line