Today’s close could be pivotal for the FTSE 100, according to Andy Dodd, Head of Technical Research at Louis Capital Markets.
A low close for the FTSE 100 today would leave a bearish Inverted Hammer on the monthly chart and Dodd says this would suggest a move lower over the coming months (see Chart). If this occurs, Dodd would use such a signal as a trigger for taking profits on longs. A break above 7123, however, would move his stance to bullish.
Read the full report, including an analysis of the following futures markets:
Dow Jones Industrial Average
Dow Jones Transportation
MSCI World Index
STOXX Europe 600
EURO STOXX 50