FTSE 100 rallies into key 7706 resistance
The FTSE 100 managed to rally back into the 7706 resistance level yesterday, following on from the rebound at 7543 support. This continues a range that has been in play for some time yet, with that one break below 7543 providing the outlier.
Besides that, we have seen the FTSE 100 trade within the 7706-7543 boundaries for over three weeks now. Conversely, we could be looking at a complex inverse head and shoulders formation, with a break above 7706 providing the bullish breakout signal. In either case, that 7706 level remains a key determinant of future price action. We either reverse lower from here or break into a bullish phase, depending on the response at this level.