FTSE in one-hour bullish channel

Recent price behaviour in the FTSE 100 has been, for the most part, corrective.

The price action is trading above the 200 DMA but below the 20 and 50 DMA. Daily support is found around the 6305 level with the old support of 6400 currently acting as a barrier to additional topside.

If we see a move through the 6276 level, and more importantly the 6200 level, this could be construed as a bearish development and open up the route to an even bigger decline.

The one-hour chart shows that trade is in a bullish channel with rising support coming from the 13 June lows. Early trade has seen the index rise through the 23.6% retracement (6360) of the entire move down from the 22 May highs, and while this level holds there is a distinct possibility that we will again see a retest of the 6400 resistance level.

Intraday resistance may rear its head around the 6420 level which, if breached, will send the price action towards the top end of the channel around 6450.

FTSE 100 one-hour chart

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