UK FTSE 100

If markets are going to move higher, especially in Europe, UK’s FTSE 100 index is my top candidate for a strong breakout. Index is testing 13 year-long horizontal resistance at 6,850 levels. The fact that the market hasn’t pulled back from the resistance area shows its strength and possibly its willingness to clear the multi-year resistance. Of course, this has to be seen in the form of a decisive close above the strong resistance. In the medium-term index formed a bullish ascending triangle. Breakout above 6,850 levels will have long-term implications. Breakdown below 6,500 levels can change the bullish outlook to neutral/negative.