Against a background of a bearish forecast for FTSE on the week, but with prices trading close to 6612.0, a 50% pullback to the entire 2014 gains and with the UK outperforming mainland Europe, Monday’s trading saw sentiment initially improve by almost 50 Pts.
However, the rally has stalled from ahead of 6683.0, a 50% recovery to the losses posted since last week’s high, sentiment closing just modestly higher on the day overall. The potential for a bounce is growing, but the absence of a buy signal keeps Tuesday’s outlook negative and the call is to sell on the open and at 6655.0, with a stop loss at 6674.5, Friday’s high. Targets are to 6618.0/23.0, yesterday’s low, 6600.0 and 6575.5, Friday’s base
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