FTSE 100 Technical Highlights:
- FTSE continues to stay within confines of channel
- This structure keeps outlook tentatively bullish
FTSE continues to stay within confines of channel
The FTSE remains a bit of a sluggish mess of price action since the March low, but even as such it is heading higher within a structure that can give traders a guide to lean on when making decisions. The upward channel since late-March remains a focal point for market bias. Stay within and the outlook is neutral to bullish, drop below the lower parallel and perhaps we see selling pick up.
The lower line of the channel is around 5890, with it coinciding roughly with the May 22 low. This could be a spot for would-be longs to establish a position with good risk/reward. It would take a break of that threshold and the March 14 low at 5661 to really undercut the general upward bias.
Looking higher, it has been a bit of a struggle around the April 30 high as Thursday saw a brief blip above but weakness since. A continued push, however, could soon bring in the upper bounds of the channel at approximately 6400/450. If the market can get a decent push from perhaps the December 2018 low at 6536 can be brought into play.
At the immediate moment risk/reward isn’t particularly appealing for either side, but there is a good structure in place to work with as we move forward.
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FTSE Daily Chart (channel in play)
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—Written by Paul Robinson, Market Analyst
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