Bullish engulfing highlights a likely reversal for FTSE
Yersterday saw the 38.2% Fibonacci support hold as the bullish signals across many of the markets held up to push markets into a new move high. The MACD histogram bottom, coupled with yesterday’s cross on the stochastic in an oversold region, points to a period of upside to come.
However, I would be aware of the signs that possibly indicate we may have seen the beginning of a more protracted move lower. The trendline breaks, accompanied by a failure to create a new higher high and higher low means that this bounce could fall short of the 7065 mark. Thus I am bullish and see the major support for the FTSE 100 coming in at 6808, yet any upside could see sellers come in at the 20/100-day SMA confluence or the 50-day SMA and 6975 resistance zone.