FTSE pulls back following bounce
Yesterday saw the FTSE 100 recover much of Tuesday’s losses, yet was unable to hold on once price hit the 6070 resistance level. Ever since we have seen a gradual move lower, yet this appears to be a pennant formation, which is continuation pattern. This would highlight a possible move higher.
However, I will only be bullish for another move higher once we see a move above 6050. Until that happens, I expect to continue moving within this gradual grind lower.
Upside resistance would be expected at 6070 and 6123 in the case of a spike higher. Otherwise, a break lower from this pattern points to 5963. In the medium-term I remain bearish given the levels taken out earlier this week. This view will hold unless price moves back above 6170.