FTSE 100 back under pressure
Yet again last week a push in the direction of 7800 was stymied by heavy selling, with Thursday’s ex-dividend drop and Friday’s risk-off move giving the bears a reason to move in on the FTSE 100. Further declines this morning have once again put the post-June move higher under threat, although, with the price heavily oversold in the four-hour timeframe, a near-term bounce cannot be ruled out.
If the price can avoid moving below 7550 then a further rally may be possible, while a close below this brings 7490 into play. From here, 7340 is the next area of possible support. A move beyond 7670 would put the price back above the rising trendline from the June lows, and bring the 7700-7800 area into play again.