FTSE rallies from key support
The FTSE bounced up from the 6690 support level on Friday, confounding any calls for a break lower. Crucially, a break below that level would have created an intraday lower low and as such we have instead remained within an uptrend. However, overnight strength is coming under pressure at the open.
Ultimately, the ability to post a new high above 6780 will be key to remaining within this gradual uptrend. Given the flat lining lows, we have seen a warning sign of a potential weakening and as such, the bullish view is only confirmed once more with a break above 6780.
Thus while the uptrend remains intact, the conviction is weaker for now.