FTSE rallies from support zone
The FTSE has seen early strength, following a move into the 6237-6259 support zone. Considering the recent creation of lower highs and lows, another leg lower seems the likeliest event. Thus a bearish view is favoured, with the current rally seen as a retracement of yesterday’s move lower.
This bearish view would be negated with an hourly close above 6343. Given that this support zone (6259-6237) is so significant, it could make sense for bears to await a break through this level for confirmation that this selloff is set to continue.