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Hugo in HTO Trading,

FTSE 100: Consolidating near 2015 high

Since the beginning of the year the index gained in excess of 9.5% but last fell more than 0.5% and made a phase change, shifting from a bullish to a warning phase.

Last week the index went back and forward without any clear direction however closed in the red, near the low of the week, but managed to close within the previous week range, which suggests being slightly on the bearish side of neutral.

The stochastic is showing a strong bearish momentum and crossed below the 50 mid line.

Expecting an upward move to a weekly resistance at 6,810 (scenario 1) on a bounce from a key level at 6,565 however a break below the key level at 6,565 may push the index down to a weekly support at 6,278 (scenario 2).