FTSE bounces off pivotal 6000 level

The drop through the 6200 level tends to put a degree of bias to the downside for the FTSE 100.

While trading below the three key moving averages and the previous rising support from the June 2012 lows, we might look at any rallies as merely a bounce before a further decline. Only a rise through this level and indeed the 200-day moving average would tend to bring the prior bullish trend back into sight.

There is the propensity for the market to drive the FTSE back up towards the 6180 level and the diverging bullish RSI would certainly support this short squeeze.

The 6000 level has held overnight, in part due to the bounce in US indices and does seem to be a decent support with the 5983 level coming just below. A break and close through here will see a pathway open towards the 5830 level.

FTSE 100 (DFB) chart

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