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FTSE100 Analysis: “potential positivity in the coming session”

After oscillating between gains and losses on the daily chart, the FTSE 100 index recorded a doji for a second consecutive week and finished at 6109.01 on Friday, after moving as low as 5933.23 level on Wednesday. Daily momentum oscillators are pointing north, suggesting potential positivity in the coming session. Formation of a bullish engulfing candlestick pattern on the 8H chart along with a signal line crossover by the 8H MACD from below and RSI & stochastic indicators trading with a bullish bias, further endorses the above view. However, weekly technical outlook appears to be bearish as the momentum oscillators are trading with a negative bias. Immediate weekly technical obstacle is placed at the psychological 6200 level, followed by the 200week SMA (currently placed at 6360) and 6400 levels. A move back above the latter might lead to strength in the pair, clearing way for the 20week SMA (currently placed at 6570) and 50week SMA (currently situated at 6676/80) as the next potential upside targets. On the other hand, crucial near term support is situated at the 6000 level, followed by the 5900 and 5800 levels.

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