FTSE – Strong support at 7365 holds pullback for now


FTSE remains firmly in red for the second consecutive day on Thursday and extends pullback from all-time high at 7497 which FTSE contract for June delivery hit on Tuesday after nine straight days of rally. Political crisis that broke in the US weighed on UK's benchmark index which dipped to 7371 on Thursday, finding temporary footstep just above strong support at 7365, provided by rising daily Tenkan-se and Fibo 38.2% of 7143/7497 bull-leg). Pullback should be ideally contained here, according to the wave principles, as the price is currently riding on the fourth, corrective wave of five-wave ascend from 7032 (19 Apr low). However, deeper correction cannot be ruled out as daily RSI and slow stochastic reversed from overbought territory and show plenty of room at the downside. Loss of 7365 support could extend correction towards next supports at 7320 and 7280 (Fibo 50% and 61.8% of 7143/7497 rally) respectively.

Res: 7419; 7443; 7460; 7497
Sup: 7365; 7320; 7280; 7267


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