Ftse September contract Daily Forecast – 20 August 2015

FTSE July lows at 6375 are key to direction today but the outlook is negative despite oversold conditions. Be ready to sell a break below 6370 to target 6355/50 then important longer term support at 6320/15 for a buying opportunity. We look for a low for the day & perhaps for the week but longs need stops below 6300.

Holding July lows at 6375 in oversold conditions would signal the formation of a bullish double bottom pattern. Although this looks unlikely it would trigger a recovery to first resistance at 6435/38. Try shorts with stops at 6450. On a break higher look for 6470/73 then a selling opportunity at 6490/95, with stops at 6515.

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