By FXEmpire.com
The FTSE 100 had another positive session on Wednesday as we broke above the 5820 level in order to make a new high over the resistance point back in May. The index looks relatively strong, but we are starting to run into relatively significant resistance at this point. Obviously, we could run as high as 6000 and still find ourselves within this previous consolidation area that we are entering.
Is because of this that we wonder how much longer the rally came go. It has to be said however, that the Tuesday shooting star was overtaken and of course that’s a bullish sign. Nonetheless, we think that there is going to be a pullback coming relatively soon so we are not willing to chase positions at this point in time. Perhaps a move a little higher from here could offer enough resistance for the pullback that would be needed to join the market higher. In fact, that is probably the most conservative way to play this market at this point in time.
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Originally posted here
