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The FTSE 100 index is ending the inaugural week of 2019 on a positive note, +1.5% for the week. This comes courtesy of a late Friday rally on the back of a better than expected December US jobs report and China delivering welcome stimulus in the wake of disappointing macro data.
What lies ahead? Bulls are looking for a revisit of mid-December highs around 6900. We could even go as far as a 7015 if we complete the 240-point bullish inverse head-and-shoulders reversal pattern started today.
Bears, still focused on the downtrend dating back to May, require a break back below 6770 to begin a retrace of this week’s bounce.
Our watch levels: Bullish 6865, Bearish 6770
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