FTSE maintains strength targeting multi-year highs
James Chen May 8, 2014 8:08 PM
<p>The FTSE 100 index (daily chart) has continued its drive towards its key upside target around the 6870-6880 zone, which stands conspicuously as a triple-top […]</p>
The FTSE 100 index (daily chart) has continued its drive towards its key upside target around the 6870-6880 zone, which stands conspicuously as a triple-top resistance area at multi-year highs. Having established this resistance zone in May of 2013 and then re-testing it again in January and February this year, the UK equity index is presently trading just below this area. The current rise occurs after the index rebounded from a major trend line and double-bottoming pattern around the key 6500 support level more than three weeks ago, and has been climbing ever since.
Trading well above both its 50-day and 200-day moving averages, the FTSE continues to be firmly entrenched in a long-term bullish trend, but should soon be due for at least another pullback. Intermediate downside support on this pullback currently resides around the 6700 level, near the peak of the noted double bottom pattern. To the upside, the index continues to target the triple top resistance area around the 6870-80 multi-year highs. Any breakout above that zone would confirm a continuation of the long-term bullish trend with a further upside target around the 7000 psychological level.