FTSE pulls back into support zone, bullish trend remains strong

An interesting setup may have formed on the FTSE 100 daily chart. It has seen a strong rally from its October low and since produced a relatively shallow pullback from the 7600 resistance zone. The RSI (2) was oversold on Thursday and curled higher on Friday, which closed the day with a Spinning Top Doji candle to suggest a swing ow has formed. Furthermore, the 50-day EMA and monthly pivot point are supporting the pullback, so we’re now looking for a bullish swing trade and for the market to move higher.

Take note of the plethora of UK data released shortly, and the UK are set to release employment data tomorrow, inflation data on Wednesday and the BOE announce their monetary policy decision on Thursday.