Bearish signals for FTSE in each of the last 2 weeks have been confirmed, last week’s trading posting a loss of over 125 Pts overall. However, a sharp recovery on Friday has formed a bullish daily Hammer, a signal which usually reflects bearish exhaustion.
This has improved the immediate outlook and although gains are likely to be temporary, the outlook for this week is cautiously bullish above a stop loss at 6492.0, Friday’s base. Targets are to 6614.5, Thursday’s high, 6668.0, last week’s top and 6751.0, the 31st July high trade.