Inverse head and shoulders formation sees FTSE break higher
The FTSE appears to be in a recovery phase, following the break above 6752 this morning. That level represented the neckline of a head and shoulders formation and followed on from a higher low set on Friday. The target derived from the formation comes in at 6870, which coincides with the peak on 11 June.
As we stand, the price looks likely to reach the 6808 resistance which is a major May support level that has held twice. As such, I expect to see the bullish momentum start to run out of steam soon; however, the question is whether this marks the beginning of a more bullish phase of trading.