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Hugo in HTO Trading,

FTSE100: Consolidating gains

Since the start of the year the index fell more than 1.5% and rose more than 0.5% this past week.

Last week the index initially rose but found enough selling pressure to give back some of its gains back to the market and closed in the middle of the weekly range suggesting indecision among the investors about the future prospects of the index.

The Stochastic is displaying lack of momentum although is above the 50 mid line suggesting some strength in the index.

The FTSE100 is in a well establish recovery phase and is trading above the 10 and 200 week moving averages signaling that the upward move may not be over yet.

Expecting an upward move to the 50 week moving average at 6584 on a break above a key level at 6441 (scenario 1) or a bounce from a weekly support at 6277 could push the index up to a key level at 6441 (scenario 2).