The FTSE is moving ahead of DAX in a way that it seems to have completed its expected counter trend rally that began from 5850 levels earlier. The FTSE is has hit a fibonacci 0.786 resistance around the 6300 levels as seen on the daily chart presented here. Two potential wave counts are still emerging in the FTSE though. 1. The counter trend rally seems to be complete at 6300 levels and the next big move is expected to go lower below 5700 levels. 2. A more complex correction is unfolding, which could take prices to 6600 levels before reversing. We’d rather be more comfortable in selling rallies from here on. Immediate resistance is seen at 6500 levels, while support is seen through the 6200 levels. Also, the RSI is trading near 70 levels, which is indicating a bearish outlook.
Exit long positions. Short now, stop at 6550, target is open.