Spread betting technical analysis - FTSE in focus

FTSE

After the continued ascent of the FTSE, we can see that a potential significant resistance was reached by testing the upper channel of the extended move. What is interesting is the recent pull back found support at the previous  swing high of 6780, moreover the long lower shadow and doji candle could provide further support that the recent pull back could be weakening and a resumption of the current extension could be in play. To gain further support of this view a decisive break of 6850 would add to a potential bullish case.

FTSE_Aug26_1

However with today’s tight range and the expected speech of Janet Yellen later sentiment could change and we may see a re-test of the 6780, where participants would be keen to see if this could hold. Should we see a break of the previous swing low bulls will be hoping to see a hold of the current extension trend channel. If this is not the case support maybe found at 6740, 6695 and 6615 should downward momentum succeed.

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