FTSE choppiness continues
The FTSE has been relatively directionless this week as we lead into the European Central Bank meeting later today. The four-hour chart provides a bullish picture of price action which has been consolidating within an uptrend, with downside limited to the 6100 area (61.8% retracement).
The key to understanding whether any downside is indicative of a possible market top would be a closed candle below 6032. Until that happens, any short-term selling is likely to be bought into. The near-term level of 6100 will be crucial to the day’s sentiment, given a closed hourly candle below that would look like a head and shoulder break.
However, unless we see a break and closed candle below 6032, the uptrend remains intact, with 6220, 6270 and 6324 the next major resistance levels.