FTSE losses continue to take out crucial support levels
The FTSE has continued to plummet, with today’s price action moving below both the December low of 6123 and October low of 6070. It is difficult to gauge exactly when this rout will stop, and it takes a brave person to go long in such conditions. Thus I see it worthwhile to watch intraday charts, and the current upside seen on the hourly chart points towards a recovery for the time being.
Given the trend, I would be looking for the sellers to come back into play soon. The 6070 and 6123 areas have now turned into key resistance levels from previous support, and thus I am bearish as long as the price remains below 6123, with reversal signals such as a bearish engulfing possibly around the 6070-6123 region expected to resume downside.