FTSE selling off from key resistance
Yesterday finally saw the FTSE 100 sell off through 5768 support (August 2015 low), which represents the biggest support level in the past six months. This break is absolutely crucial as there are few major support levels beneath it, hence the strength of yesterday’s move lower.
Overnight the FTSE has pulled back up to that crucial level and posted a gravestone doji prior to selling off once more. Given the continuous/gapless nature of these charts, this means a form of evening star reversal is being created, providing a renewed bearish outlook.
With all this in mind, the bearish view remains in place, where yesterday’s low of 5600 (November 2012 low) represents the main hurdle to get through for the day.
A closed hourly candle back above 5768 would be required for this bearish view to turn more bullish for the short-term.