FTSE pulls back after new 2016 highs
The FTSE is selling off sharply after initial attempts to break higher at the open. Given the size of the recent rally, there is a clear element of profit taking amid a pullback in crude. Should we see a closed hourly candle below 6353 support, a retracement lower would seem likely, with 6330 and 6324 the next support levels to watch. Ultimately should this occur, it would likely be a temporary retracement of the recent two-day rally.
As such, Fibonacci retracements would be key as we look for the next break higher. Alternately, should the FTSE break through the overnight high of 6372, it would provide a renewed bullish view.