Chart of the day

FTSE is breaking below a strong long-term resistance of 7500. This breakout could open more downside in the case of confirmation.

This would mean that we are in the third wave of the five downside waves that can target even 6200. A confirmed break below 7200 would lead to an acceleration in the third wave and that is the next key resistance.

This is opening a possibility of the short trade first. Long trades will come only if the short trade is stopped. Look to short upon an intraday break below 7480 with the stops just above 7500.