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Although the FTSE 100 teased a little under 6350 intraday, there was no discernible pickup in downward momentum, and long positions remain intact and on target toward my price objective at 6922.
Stock markets’ recovery post the US political brinksmanship has been impressive, with the FTSE recording an unbroken rise of around 5% from its intraday low. Although it has been choppy at times, the FTSE has now risen 185 points since my last update nearly two weeks ago. With the index now sitting 300 points short of target, this requires a further rise of just 4.5%. With the UK set to announce forecast-beating economic growth data, and with Chinese growth clearly accelerating, these targets look capable of being fulfilled as we enter the seasonally strong year-end trading period.
Today's chart displays a long-term analysis on the FTSE 100, and highlights the cluster of percentages that comprise my expected target/resistance at 6922. More ominously, it also highlights the potential of a major triple-top pattern developing at the same level.
Recommendation: Stay long. Target 6922. Stop-losses can remain unchanged and activated on momentum below 6350.