FTSE hits crucial Fibonacci support
The index has seen yet another sharp leg lower this morning, in a continuation of the weakness we have seen dominate the second half of the week.
However, looking at the four-hour chart, this recent move looks like a retracement rather than a reversal. With that in mind, it is very telling this morning’s sell-off has respected the 76.4% pullback perfectly. We could see this level taken out, yet this is an interesting area of a potential move higher.
As such, given the uptrend in play, a bullish view is back in play from the 76.4% retracement (6190) for a move back to the highs of 6323. This would be negated with an hourly close below 6149.