Short covering in FTSE

by Malcolm Pryor on 19/11/2012
2.4% up day for FTSE 100, and now there has been a false break out below the early September swing low 5635. Bulls have mounted a successful defence of that major support area, shorts have been covered throughout the day, at least for now. That is the lower of the two lines on the attached Sharescope chart. The higher line is now the new battleground, 5715. It was support (lows of days with long lower tails, 9 and 13 November, plus half way up the large up day in early September). Then it became potential resistance on 15 November as bulls began a 2 day capitulation. Now for the bull case to continue price needs to keep above that 5715 level.


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