FTSE Technical Analysis
- The FTSE 100 weekly chart shows how 5,500 is acting as a price pivot area. The first test of this level has seen a bounce; however, the retrace from 5,500 was not strong enough to close in the red on a weekly basis.
- The bullish hammer candle did not have a strong confirmation move to the upside but is still active, until the lows under 4,800 are penetrated.
- Further range bound price action for the FTSE could ensue after the market consolidates following the increased volatility seen of late.
- 4,800 support could be key for the FTSE in the near to mid term.
- The move down from 6000 was decisive and could potentially be showing there is a high level of “supply” in this area if reached again.
- The FTSE fell strongly last Friday on a global market sell-off following poor U.S. jobs data.