We need some sort of resolution here. It can be seen that there is a shorter term bullish support line but looming overhead are two (red) short term bearish resistance lines. If the FTSE can push on through these and get up to the 5,450 level, we could have a push on to 5,750, which would give something akin to the double topping pattern we had in Q3 2007.
The column of six 0's which has just been reversed by today's up move has created an unactivated downside price objective of 4,950 which I have not placed on the chart. For it to become active, the bears will need to take control, reversing this up column of X's in to a new column of 0's and moving the index back below a closing level of 5,225, one box below the previous low of 5,250 made by the last column of 0's.
A difficult one to call at present because the battle between bulls and bears remains intense but this should be resolved soon.
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