The bullish thrust seen in the main stock market indexes hasn’t skipped over the FTSE100, and a strong break up above the previous two week range appears very clearly.
However, please pay attention to a shortening of the thrust that took place in the last 2 trading days. Price moved sharply from one edge of the Bollinger Bands to the other, but couldn’t touch the upper band, not to mention a penetration of it. So, this is a clear sign of weakness.
The price has stopped on a clear resistance level: 6269.6. Further bullish thrust will have to deal with the next resistance level, at 6298, and a band of resistance levels at 6316 till 6329.
On the other hand, further signs of weakness might bring the price back to the mid weekly range, approximately at 6160, where the daily 200 SMA currently is. Strong support should be expected at 6216 and 6169.5. Although it seems far and irrelevant at the moment, a thrust down below the Weekly Swing Low at 6050.21 is a clear bearish sign to reach the amplitude length made so far (Weekly Swing Low up to the current price), i.e. at least the 5830 level area.
It is very important to notice how the Monthly bar is going to close. Closing the month above 6260, which is closing above an important short term exponential moving average: 8 EMA, will be bullish midterm, especially after a thrust up at the beginning of the new Monthly bar of June. In this case, perhaps only then we might see a retracement back to the weekly mid range as a re-accumulation to go higher. If the level of 6427.32 is taken out, then most likely, within the same momentum, we should expect to see the next two highs at 6447.34 and 6459.46 taken out as well (but not necessarily the High of 6487.89).
Disclaimer: Anyone who takes action by this article does it at his own risk and understanding, and the writer won’t have any liability for any damages caused by this action.