FTSE headed higher as expected beating resistance at 6350/56 but fell a few points short of the 6376 target & sold off sharply to hold just above support at 6287. We are a little overbought in the very short term so we could continue lower but should find a buying opportunity at 6265/60. Exit shorts & try longs with stops below 6230.
The daily chart is getting more positive so eventually this week we should start to push higher. Above 6330 look for 6353/63. A break of yesterday’s high & resistance at 6370/76 should see a test of the 100 day moving average at 6400. If we continue higher we run in to tough Fibonacci resistance at 6450 with a high for the day expected if we reach this far.