Chart of the day

FTSE is testing the strong upside consolidation resistance 7610. To extend higher, we must see a confirmed break above 7610 to confirm that we will have the fifth upside wave extension which will be confirmed by a break above 7000.

If the fifth-wave upside seems to be finished, we must see a break below 7250. We need to see a clear confirmed break below 7200 for the upside fifth wave to be confirmed as finished and for the short trade entry medium-term to be justified. Until then we will be in a swing range and we can only trade swing short or swing long trade.

Short trades could be opened here with a stop just above 7700. Long trades should be opened only upon a break above 7700 and stops taken out. The instrument is making a key consolidation ahead of the directional trade.