FTSE 100 daily Chart

TVC:UKX   UK 100 Index
The FTSE 100 has closed above the 7186 and then 7196 resistance levels. But it has fallen back below them a gain. This is a critical moment. For the new bullish trend to continue effortlessly, it needs to close above these resistance levels. In which case, the price could rise to test the 7365 resistance. Otherwise, it will go sideways or even downside for a while before continuation upwards.

The current support level is at 7170 (You can see the consolidation on the chart with multiple candle bases). This is marked "First Support". This needs to hold for the bullish trend to continue seamlessly as it is for now.

If this breaks down, I suspect that the price will head down to test the "Second Support" which is the previous minor price retreat at 7065. At this point the bulls are still in charge honestly. This should be a minor bleep I hope.

If this fails, it will the go further down to test the "Third Support" at the trendline. Even at this line, the bulls are still marginally in control until a new trend is fully established. But then they'll just be hanging in by a string. The bears will be close to taking over.

I will come back for further information as soon as this scenario begins to play out. Let us see how it unfolds.. So the question really is: Will the price test the 7365 level straight off or will it retreat downwards first, to get a support from the trendline before heading to test the 7365 level.

Please, use this information at your own risk.