Market News & Analysis
[Video] FTSE Could Retrace Further Before Breaking To New Highs
Matt Simpson July 8, 2019 8:20 AM
A 3-bar reversal has formed on the FTSE below resistance, warning of a correction. Yet the dominant trend remains firmly bullish, so we’re looking for a higher low to form before it breaks to new highs.
It doesn’t seem that long ago that FTSE was on the cusp of confirming a head and shoulders reversal pattern on the daily chart. Yet the June low provided a bullish hammer and prices have since been catapulted higher, and broken to new highs. Standing back, we note the bullish trend structure is developing nicely since providing a 3-wave correction between mid-April to early June. And, given the overall strength of the trend, we expect prices to continue higher in due course.
However, a 3-bar reversal pattern has formed below resistance, which warns of a potential correction from it’s highs. Therefore, we’re looking for prices to build a new level of support before in form of a higher low before seeking potential long positions.
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