FTSE rallies into Fibonacci resistance
The FTSE has seen an incredible start to the week, with the French election sparking a surge into and through the key 7253 resistance level. While that break has provided us with a more bullish signal, the fact remains that the index remains within a downtrend given the creation of lower highs and lows.
As such, we would need a break through 7346 to negate the potential for further downside. Watch out for the response to the 76.4% Fibonacci resistance as a means to understand whether this is just another retracement or a wider recovery.