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The FTSE 100 is both off its lows and its highs into the long weekend. We are sideways, and uncertain whether this is the beginning of a second bounce from 7210 towards prior highs of 7500. Or is today’s bounce petering out at 7300 for another leg down, for a revisit of 7210, perhaps even 7129.
Bulls need a break above 7300 to give confidence in that second bounce towards 7500. Support at 7265 could be the platform required for the next leg higher.
Bears, on the other hand, require a breach of 7260 to open the door for a pull back towards 7210. In fact, have we already breached rising support? Is that a bearish head and shoulders top formation we spy?
Our watch levels: Bullish 7300, Bearish 7255
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