The UK FTSE100 Index is extending the bounce from the 7093.57 low of 2 February.
Rising daily studies suggest further short-term gains, but falling weekly stochastics and a weakening Tension Indicator (not shown) suggest any immediate tests of critical resistance at the 7354.15 high of January should be treated with caution.
In the coming weeks, risk/reward points to a corrective pullback, with a close below 7093.57 opening up the 7016.50, (50%) Fibonacci retracement of the December-January rally and congestion around 7000.
A further break would turn investors neutral once again, as deeper reactions target the 6936.75, (61.8%) Fibonacci retracement. An unexpected close above 7354.15 is needed to negate downside tests, and confirm continuation of the broad 2016 rally towards the 7395 Fibonacci projection.
Rising daily studies suggest further short-term gains, but falling weekly stochastics and a weakening Tension Indicator (not shown) suggest any immediate tests of critical resistance at the 7354.15 high of January should be treated with caution.
In the coming weeks, risk/reward points to a corrective pullback, with a close below 7093.57 opening up the 7016.50, (50%) Fibonacci retracement of the December-January rally and congestion around 7000.
A further break would turn investors neutral once again, as deeper reactions target the 6936.75, (61.8%) Fibonacci retracement. An unexpected close above 7354.15 is needed to negate downside tests, and confirm continuation of the broad 2016 rally towards the 7395 Fibonacci projection.