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FTSE Technical for the week ahead with a close above the crucial 200week SMA

After trading sideways for a last few sessions on the weekly chart, the FTSE 100 posted significant gains in the previous week and posted a close above the crucial 200week SMA (currently placed at 6368/70) at 6416.16, after hitting a high at 6453.22. As of now, weekly RSI and stochastic are heading sharply higher, along with the MACD moving north, hinting at a bullish momentum in the coming session. Daily MACD and RSI indicators are also pointing north, further endorsing the above stance. However, a potential upper Bollinger band crossover on the daily chart, suggests that the pair is likely to witness correction in the near term. Immediate weekly resistance is situated at the 20SMA (currently placed at 6499/6500), followed by the 50 and 100SMA (currently situated at 6673/80) and 6800 levels. A clear and sustained break above the latter might trigger further acceleration to the upside. On the downside, important support is located at the 6021/20 level, followed by the 5933/30 and 5877/85 levels.

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