Three bearish candlesticks in-a-row suggest that the medium-term upside is limited for FTSE, according to Andy Dodd, Head of Technical Research at Louis Capital Markets.
Dodd points out there have been two hanging men and one bearish engulfing candlestick over the last three weeks on the weekly chart. Together with a lack of momentum and weak RSI readings, Dodd sees this as a sign there is, “little value in a long here on a medium-term view.” Dodd suggests a short on a close below 7011 as a medium-term trade.
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