FTSE - Medium term prospects turn mildly positive

Ian Coleman FXStreet

Technical

Monthly: The corrective sequence has found buyers close to the 38.2% Fibonacci retracement. A bullish hammer has been posted and the reaction higher is positive.

Weekly: Multiple weekly trend line support has been breached, however, prices have broken back above the more major 2016 FEB/JUN trendline support. Horizontal resistance lies at 7336 and rallies to here should initially be capped.

Daily: The aggressive rally from 6850 has stalled at the top of the mild bearish channel. With the rally also being capped by the daily ichimoku cloud. Intraday bias is mildy bullish after 2 strong days of gains, however, a deeper correction cannot be ruled out, although, this may set the scene for a possible reverse head & shoulders formation.

Action: We look to Buy at7050

Stop: A break below 6900

Targets: 7325 & 7500

Article produced by Pia First for Orbex Limited

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Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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