This morning’s chart:

The FTSE traded in a relatively narrow range above the 5900 level overnight, and then declined rapidly from the open. It’s still trading within the upward sloping channel on the hourly chart so will be looking to place longs off key levels of support.

Strong overnight rally suggests the FTSE could move back up, as far as the 6000 level by close of play me thinks. With the FTSE trending up as it is, I’ll be looking to trade off pullbacks to any key support and resistance levels.

The FTSE sold off overnight so expecting further downside pressure and a possible re-test of yesterday’s lows. I’ve re-drawn the downward channel on the hourly and I think the FTSE will retrace to the bottom trendline by the end of the week.