By Dominic Picarda.
Equities have been taking a breather for the past couple of sessions following their latest burst higher. I see this as a healthy pause. We are now, of course, in the seasonally more bullish time of the year for the stock market, which makes just one more reason to keep faith with the uptrend. Overall, the rally of recent weeks may only be in its middle stages, despite the overstretched daily momentum readings that flashed up a few days ago. As such, I would be looking for further buying opportunities in the very near term.
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FTSE 100
The FTSE is flat as a pancake right now. But I foresee a happy ending to this horizontal phase. The pause has unwound the daily overboughtness, paving the way for a renewed burst to the upside. I reiterate my target of 6839, therefore.
Support: 6732.3– Resistance: 6930.4
Support: 6718.2 – Resistance: 6870.1
Support: 6699.1 – Resistance: 6839.0
Support: 6619.1 – Resistance: 6789.7
DAY: Stay long or buy a bounce back through the 21-hourly EMA
POSITION: Stay long.