Chart pattern – Double top
Major support- 7338-7340 (trend line joining 6789 and 7283)
FTSE100 is trading weak for the past two days after showing a minor recovery till 7473. The index breaks major support 7340 level and closed slightly below trend line support. The index dipped till 7316 and is currently trading around 7329.
The index’s short term support is around 7340-7336 (61.8% retracement of 7193 and 7590 and 200- day EMA) and any close below will drag the index down till 7282/7193. Any convincing break below 7190 confirms long term trend reversal, a decline till 7000 is likely.
The near term resistance is around 7498 (61.8% retracement of 7590 and 7348) and any break above will take the index till 7550/7600.
Overall bullish continuation only above 7600.
It is good to sell on rallies around 7375-7380 with SL around 7475 for the TP of 7195/7150.
Major support- 7338-7340 (trend line joining 6789 and 7283)
FTSE100 is trading weak for the past two days after showing a minor recovery till 7473. The index breaks major support 7340 level and closed slightly below trend line support. The index dipped till 7316 and is currently trading around 7329.
The index’s short term support is around 7340-7336 (61.8% retracement of 7193 and 7590 and 200- day EMA) and any close below will drag the index down till 7282/7193. Any convincing break below 7190 confirms long term trend reversal, a decline till 7000 is likely.
The near term resistance is around 7498 (61.8% retracement of 7590 and 7348) and any break above will take the index till 7550/7600.
Overall bullish continuation only above 7600.
It is good to sell on rallies around 7375-7380 with SL around 7475 for the TP of 7195/7150.