FTSE 100 looks higher – at least, in the short-term
After such a selloff yesterday, the expectation is that we have a drift higher, at least in the short-term. Intraday charts are flashing oversold readings, so with the FTSE we may see a push back towards the August low of 5768, at which point the sellers may take over again.
The move may go as far as 5794, the 50-hour simple moving average, but for the time being any move by momentum indicators such as stochastics into overbought territory on the hourly/two-hourly chart should be seen as another sell signal. A fresh move below the overnight lows around 5660 targets 5605 in the first instance.