FTSE Tests Long Term Significant Resistance

12 October, 2016

The FTSE 100 index hit an all-time high, on Tuesday. It was helped by the outperformance of energy and mining sectors, as a result of the rise of oil and precious metal prices, as well as the increase in corporate overseas profits, as a result of a weak pound.

On the daily chart, we can see the trend has been bullish since the Brexit vote in late June.

The near term major resistance level at 7000 was broken on 4th October.

The current price is still holding above 7000 and the uptrend line support.

Yet the price retraced after testing the long term major resistance level at 7130, where it nears the previous high in April 2015, the selling pressure is very heavy at this level.

The current trading pattern is likely to oscillate in the range between 7000 and 7130.

The resistance level is at 7080, followed by 7130 and 7200.

The support line is at 7030, followed by 7000 and 6940.

EURJPY has remained bearish since June 2015. Yet it started bouncing since the Brexit vote in June, after testing the significant support line at 110.00.

Last week the bulls tested the mid-term major downtrend line resistance, where short term major resistance level at 116.00 converges. It retraced as the selling pressure at this level is very heavy.

The current trading pattern is likely to oscillate in the range between 112.00 and 116.00.

The resistance level is at 115.00, followed by 116.00 and 117.00.

The support line is at 114.00, followed by 112.70 and 112.00.


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