The FTSE 100 is mounting a reversal attempt but the 6,800 points’ barrier might be hard to overcome.

By Alpesh Patel

Last week the FTSE 100 has been on a transitional phase as it was trying to find enough support around the 6,700 points’ area to attempt a reversal. We at InvestingBetter.com have been calling for a reversal scenario that could trigger at any time and could drive the FTSE higher given the proper incentive.

It seems that the FTSE has actually found enough support around that area and today it has mounted an attempt to climb higher. At this time the London index is trying to break above 6,800 points and I personally believe that this is the important pivot point for the days ahead.

If the FTSE manages to build a foothold around this area and investors realize that the UK still has a lot to do for interest rates to rise in 2016 then we could be in for a rally towards the 6,900 points. On the opposite case if the FTSE finds it hard to overcome this short-term resistance then I believe that a pullback towards the 6,700 points’ area is equally possible.

Given that there is a lack of any important reports scheduled for this week both scenarios are equally likely to play so we’d be better off approaching this from a technical standpoint. My analysis at this time points towards more gains so I am relatively bullish for the short-term.

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