FTSE resurgence leads to an early morning selloff
Yesterday not only saw the FTSE close back above 6317, but then use that level as support for another move higher. The rally failed to retake the 9 October peak, yet a bullish reversal has clearly happened on the intraday chart.
We are seeing a pullback this morning, but given the creation of new highs and higher lows, we would have to see the price move back below 6317 to start looking bearish once more. With that mind, I am expecting the price to find support at either the ascending trendline that is currently being tested, or else the 100/200-SMA and 6344 cluster.
We are clearly now creating higher highs and higher lows on the intraday charts, which thus points towards a continuation unless the price moves back below 6317. The next level of resistance to watch is at 6408 and 6454.