The markets closed early today. The FTSE sold off after hitting resistance at the overnight high, for support and managed to rally back to 6250 after a small dip. Chart shown below for reference only.

The FTSE traded in relatively narrow range overnight and it’s been the same after the open. Not trading today so have a great weekend and enjoy the new years celebrations.

Despite the bullish sentiment as the end of year fast approaches, the FTSE failed to break through the 6300 level and remained confined by the downward sloping channel indicated on the daily chart. Two more trades for me after this morning’s trade, both off MACD divergence patterns plus key support and resistance levels.

The FTSE traded in a very narrow range overnight, pretty much hugging the 6300 level, and it was only at the open that it declined sharply. Note the little spike up to clear overnight stops (typical turtle soup or stop raid pattern) prior to the drop.

Looking at the higher timeframe charts I noticed that the FTSE was at the top of a declining channel which technically, may have explained the drop away from 6300. I only managed one trade which was off the previous day support at around 6265 and closed that out for 8 points.