FTSE heading lower, in potential head and shoulders formation
The FTSE 100 is turning lower once more this morning, following a failed attempt to break higher yesterday. The key thing to note is that we did not see a break through Tuesday’s high of 6324 and thus whilst this could be a temporary breather, a break below 6258 would create a bearish head and shoulders pattern.
Given the uptrend in play in June so far, it makes sense to expect another rally until we see a break below that key neckline. However, be aware that the 6258 level represents the key turning point where the uptrend could begin to come under serious pressure.