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Will Martin Luther King Day drive FTSE 100 higher?
With US markets closed for Martin Luther King Day, some opportunistic buyers may take the opportunity to push this index off the lows from last week. That is what is happening now, with the 5840 area, key support from last week, being tested in early trading.
A continuation of this move takes us towards 5867 and then on towards the 200-hour simple moving average (SMA) at 5937. Rallies on the hourly chart, pushing indicators such as the relative strength index (RSI) back to overbought levels, have been the cue for fresh selling, so we may see this develop.
A move back down towards 5750 suggests a test of 5688 and then 5584.