FTSE 100 heads into resistance once again
The FTSE 100 clearly has little time for downside, with the price gradually failing to fall into the lower thresholds of its range. Instead, we have seen the price finding support around 7632 over the past fortnight, repeatedly pushing the upper limits of the range.
This points towards the potential for a bullish breakout. However, it is worth noting that the wider trend points towards this period of upside being a potential retracement of the sell-off from 7797, with the 76.4% retracement level at 7723. Should we see the price break through that level and maintain momentum above there, it could point towards a potential break higher from this multi-month period of weakness. Until then, this rally could easily provide us with yet another short-term rally into resistance before we turn lower into the 200-day simple moving average (SMA) yet again.