As expected, the FTSE100 is currently facing an important resistance at 6693.8 mentioned extensively in the last review. The Daily bars are printing a Megaphone pattern, many times this pattern predicts a nearby reversal (in the same timeframe).
The Weekly price action is still very bullish. The passing week has been the 3rd week with a deep penetration of the upper Bollinger Band, and is almost completely beyond the upper band.
The Friday bar ended as a bullish pinbar on the short term sentiment line, the 8 EMA. As long as the Daily Low is being respected, a thrust above its high in the coming week gives a target of the same amplitude of this pinbar, i.e. around 6721.
However notice that this target at the 6721 area is within the range of last week, in other words, in the same area of resistance. Besides, the Daily bar of Thursday negated the previous Daily bullish setup.
If we combine together the above, there are basically many chances for a sideways action, halting the current strong Weekly bullish momentum. Perhaps the High and the Low of the current Monthly bar of July have already been printed (or are closed to their final values).
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.