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FTSE spikes higher following Greek fueled selloff
Yesterday’s selloff in global indices was bad enough, until Greek PM Alexis Tsipras handed in his resignation, bringing back fears of yet further instability and crisis in Greece. Crucially this brought us past yet another major swing low, at 6295. However, the major bounce higher this morning is bringing us into possible recovery territory.
For me to gain confidence that the index is going to see further upside, I would need to see a move back above 6310, which was the recent resistance before the latest leg lower.
The price is currently challenging this level and thus I would be looking for new support on either 6310 or 6295 should we see a clear move through the former.
Ultimately, it’s always going to be difficult to call upside in the face of such substantial losses. However, 6310 is crucial to the day’s direction and I would be more confident at a pullback to such levels rather than playing the initial breakout. Upside resistance is expected at 6310, 6352, 6384 and 6411, while support would be back at 6200 and 6123.