FTSE: A break below 6290 targets 6250
|FTSE
FTSE 100 December Futures we wrote: overbought on the daily chart but no sell signal yet. A period of consolidation & sideways movement would not be a surprise.
Well that's exactly what we are seeing (unfortunately) as we hold support at 6315/05 perfectly – this has proved to be a good scalping level in quiet conditions.
Daily Analysis
FTSE establishing a period of consolidation & sideways movement to ease overbought conditions exactly as predicted. Longs at support at 6315/05 working well but need stops below 6290. A break lower targets 6250/45 then strong support at 6220/15.
Minor resistance at 6360/70 (& we topped exactly here in fact yesterday) but above 6380 targets 6410 before a retest of 6445/50. If we break higher, expect very strong resistance at 6510/20. Shorts need stops above 6535. A break higher targets 500 week moving average resistance at 6580/95.
Chart
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