Back in my last post (kindly check here), it looks that the FTSE 100 (informally called as “footsie”) has broken down from the head and shoulders setup. However, I was wrong. As many investors were hopeful for the incoming earnings reports both in the US and around the globe, most of the major stock markets rebounded today as well as the FTSE 100. Looking at the footsie’s chart, the index went back above the neckline of the head and shoulders formation, closing at 4,965.00 with a 2.9% gain. If this index continues to edge higher, it could rise until it encounters some selling pressure at its immediate resistance which is at the 5,000.00 psychological level. If the resistance at 5,000.00 gets cleared out, its next stage would be at 5,331.50. But in case the index slips and slides again, the neckline of the head and shoulders and the 4,800.00 psychological marker could halt it from edging lower. But if these levels break, the index’s next supports would be at 4,675.50 and 4,520.80.
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