FTSE100 is hovering in a narrow range of 6800-6900 this week.
Despite, last Friday’s rebound from 6746 to 6894 levels, the index has had a tough time extending gains above 6900 levels.
Also note the today’s candle has a long upper shadow and that forces us to consider the possibility of selling pressure gathering pace, especially if the head and shoulder neckline level of 6755 is breached.
Also note the weekly MACD is losing height, while the weekly RSI has turned lower from the overbought territory.
If indeed we see a breach of 6755 support a 100 point drop could be seen.
Despite, last Friday’s rebound from 6746 to 6894 levels, the index has had a tough time extending gains above 6900 levels.
Also note the today’s candle has a long upper shadow and that forces us to consider the possibility of selling pressure gathering pace, especially if the head and shoulder neckline level of 6755 is breached.
Also note the weekly MACD is losing height, while the weekly RSI has turned lower from the overbought territory.
If indeed we see a breach of 6755 support a 100 point drop could be seen.
