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

Article source: https://www.dailyfx.com/forex/technical/home/analysis/uk100/2018/09/19/FTSE-Technical-Outlook-Slowly-Finding-its-Footing-Levels-Lines-to-Watch-PRtech.html