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FTSE Technical Analysis for January 04, 2016

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The daily chart view in FTSE has reversed as expected from the 6280/6300 levels last week. Please note that 6300 levels is also fibonacci 0.618 resistance of the drop from 6440 to 5850 levels earlier. The indice should well remain in control of bears till prices stay below 6500 levels broadly. The other wave count is that the indice could rally through 6600 levels and then reverse lower. Immediate resistance is seen through 6500 levels, while support is seen at 6000 levels for now. Looking into the wave structure, higher probability remains for a drop below 5700 levels; either from here or from 6600 levels. Please note that RSI trades around 58 levels for now, leaving room for a spike through 70 levels before reversing. Selling on rallies remains a preferred strategy from here on.

Trading recommendations:

Flat for now, looking to enter shorts.

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