FTSE within crucial resistance zone
The FTSE 100 has seen a very strong rally throughout this week, bringing price into the 6024 resistance level that seemed likely to cap such upside momentum.
However, despite this bearish bias, we have not seen any signs to say that this market is topping off and thus a bearish reversal sign would be required to negate the bullish view that has dominated the week.
We are currently seeing a period of overnight consolidation and thus the breakout will be very clearly defined, with a closed hourly candle above 6033 or below 6000. The crucial hurdle that needs to be taken out for the medium-term picture to change is a break through 6128 which is the next major resistance point.
However, if that doesn’t happen, there is a good chance we could see sellers come back into the fold at these levels.