FTSE 100: Temporary recovery with near-term support seen at 6216 – Credit Suisse

FTSE 100 has found support above the 13-day exponential average at 6216 but analysts at Credit Suisse still have a negative outlook for the British index and view the recovery as temporary only. 

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Key quotes 

“FTSE has found support above its 13-day exponential average, currently seen at 6216 but despite this our one-month view remains negative and with daily MACD momentum having crossed lower, we view this bounce as temporary ahead of the risk turning lower again.” 

“Support is seen at 6216/09 initially, ahead of 6185 and then 6064, beneath which should see support back at 5959/52. Removal of here and we see the crucial 38.2% retracement of the entire rally from March at 5896, which we look to hold at first. A direct break though would see support next at the (now rising) 63-day average, currently at 5885.” 

“Resistance is seen at 6310 initially, then 6328, with a break above 6387 needed to reassert upward pressure again for a fresh look at 6512, above which would see resistance next at the December 2018 low at 6537.”