FTSE fails to close below support and forms potential bullish head and shoulders formation
Yesterday’s bounce across the major indices saw the FTSE somehow turn early losses into gains and most notably that provided the index with a daily close above 6672. The selloff from resistance at 6743 later into the session pointed towards a clear resistance that needs to be cleared if we are going to see a resurgence in the FTSE.
The bounce this morning came from a higher base than yesterday’s low and this gives us scope for a possible inverse head and shoulders formation, which if completed would point towards a move back to 6861. For that to happen, we would need a move above 6743, which seems likely today given the strong UK open.
As such I am looking for a move to 6743 and will take it from there. A move above 6743 would point towards 6861, whereas further respect of that level would point towards a move back towards 6692.