FTSE 100 at key resistance zone
The FTSE 100 has managed to break back into a crucial area of resistance this morning, with the price pushing through the 7503 swing high. With that move, we are subsequently seeing the index reach a descending trendline, which is accompanied by the 200-hour simple moving average (SMA) of 7507, and 76.4% retracement of 7510.
The ability to break through these points of resistance will tell us a lot about the ability of the index to continue pushing upwards. An hourly close above these points would go a long way to proving that the recent downside is set to reverse. Ultimately, a break above 7520 would be the key bullish indicator to negate the recent downtrend. Until then, there is always the possibility that the trend will kick in once more.