FTSE has reacted on its very short-term bullish pattern which it formed during last few weeks. But it could not maintain that level.
In the upside level above 5600 looks far for now so first it has to cross 5500 (around 5524 is the 50% retracement level considering its May top). But these all come when it will show positive moves above 5400 for few more days, as right now it is facing resistance around 5450 level (5455 is the 38.2% retracement level).
So if it fails to cross 5524 level in early to middle days of the coming week then it has more chance to drop but here I will not surprise if it drops less. Because it looks to me that FTSE 100 is creating a reverse symmetrical triangle, though it will be wrong to come into a straight conclusion because it has the options to develop different other patterns too, therefore reaction can be deeper. I think coming days may give a clear indication.
FTSE is making a long to medium term bearish pattern which can take it near around 4500 level. So considering that I think FTSE has more chance to drop in future and I will think otherwise if it breaks 5600 level in the upside.
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