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The FTSE 100 made fresh 6-week highs this week, extending its June rebound, and looks set to close the week 1.1% higher.
Drivers which helped the index higher this week include hopes of more central bank stimulus (ECB, Fed) and higher oil prices (supply restrictions, Middle East geopolitics).
That said, the index is also in a consolidation pennant pattern with a GBP bounce (USD weakness) hampering the FTSE from making further gains. Note US markets back trading fresh record highs. Will this pennant help the index higher or lower?
Bulls need a break above 7458 highs to exit the pennant to upside for a bullish breakout towards 7528 April 2018 highs.
Bears require a breach of intersecting rising support at 7409 for downside to 7360, if not last week’s 7320 lows.
Our watch levels: Bullish 7460, Bearish 7405
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