FTSE 100 heading back towards key Fibonacci resistance
The FTSE 100 has been attempting to regain ground overnight, following a move lower from the 61.8% retracement. There is a strong chance that we are seeing a retracement of the 7796-7543 sell-off, thus highlighting the importance of the 61.8% (7699) and 76.4% (7736) retracements.
With that in mind, the strength we are seeing this morning looks likely to reflect either an attempt to move into the 76.4% retracement, or else a short-term bounce before we continue the weakness seen yesterday. A break below 7622 would provide confirmation of a bearish shift, while a rally into the 7736 level would look likely a good shorting opportunity.