FTSE100 - Bullish bat pattern intact
Despite all the panic after Brexit, the bullish bat pattern and the inverse head and shoulder formation is still intact on the UK's mining heavy FTSE index.
FTSE did not even drop to the point D (88.6%) = 5601.
Today's low stands at 5727, which is 75.2%. The index currently trades at 6095. So even if we go lower from there, there is still plenty of support from which the pair could once again turn higher. Point D is a potential reversal point.
From here, fresh buying is seen only above the inverse head and shoulder neckline at 6400. Meanwhile, if we go lower, bears should observe caution in the range of 5727 (daily low) and 1.5601 (point D).
A rebound from this range could translate into a much sharper rally in the index.
FTSE did not even drop to the point D (88.6%) = 5601.
Today's low stands at 5727, which is 75.2%. The index currently trades at 6095. So even if we go lower from there, there is still plenty of support from which the pair could once again turn higher. Point D is a potential reversal point.
From here, fresh buying is seen only above the inverse head and shoulder neckline at 6400. Meanwhile, if we go lower, bears should observe caution in the range of 5727 (daily low) and 1.5601 (point D).
A rebound from this range could translate into a much sharper rally in the index.
