FTSE 100 Technical Highlights:
FTSE rising wedge is snapping, decrease ranges look to be forwardHead-and-shoulders high may rapidly become visible on weak point
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FTSE rising wedge is snapping, decrease ranges look to be forward
The grind greater within the FTSE off the August low might lastly be drawing to a conclusion because the ascending wedge the uneven worth motion has take the form of is within the means of being triggered. It has damaged when wanting on the hourly time frame, additional affirmation will come as we speak if the day can shut on the weak facet of the ledger.
Additional promoting with have a strong space of short-term help in focus across the 200-day and the place the FTSE final bounced from it, within the 7218/7199-area. There have been a couple of events the place worth has held or folded across the 200, making it a short-term spot of curiosity.
Beneath 7199 there isn’t any worth help to talk of till a pair of lows from August till you get all the way down to 7045/20. That is additionally an important space as a result of growing topping sample underneath building since April.
The potential head-and-shoulders sample may imply a a lot bigger decline is about to quickly get underway. However earlier than we are able to suppose an excessive amount of about that, the ascending wedge and near-term help are the first focus. A sustained break above 7380 will undercut the present near-term bearish bias.
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FTSE Each day Chart (wedge, H&S)
UK 100 Index Charts by Tradingview
FTSE Hourly Chart (wedge damaged)
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—Written by Paul Robinson, Market Analyst
You possibly can observe Paul on Twitter at @PaulRobinsonFX