FTSE hesitancy highlights potential retracement
Yesterday saw the FTSE 100 create a somewhat bearish candle with a long upper shadow, much like the one seen back on 11 June. Given that we also saw the same resistance level respected, I could see a similar move lower that creates a new right shoulder at 6730 region. The most important level here is the 6808 support, which if broken would point towards a stronger move towards the downside targeting 6750 (50% retracement) and 6730.
With intraday charts showing new lows being created, I am more bearish than bullish and do think it is likely we will move below 6808 before we move above 6870. However, as with all these charts, they will be significantly affected by news coming out of Greece so be aware of that.