FTSE finds support following selloff
The rally we have seen in the FTSE so far this week was spectacularly undone yesterday at the release of the US crude inventories. The key here was the ability to break back below 5902, which has happened with price falling back down to the 5843 level. The source of continued support this week is represented at 5843 and as such it is no surprise this has held once more.
As mentioned regularly, the bearish medium-term view is in place and thus any upside is seen as temporary. Therefore as long as price is below 6011, it seems prudent to look out for bearish reversal signals.
That said, while we could see further upside, we are watching for another leg lower rather than focusing on the upside. Resistance levels of note are at 5902, 5940, 5969 and 6011. Support levels of note are at 5843, 5812 and 5768.