The FTSE 100 stalls as appetite subside across risk assets. An overbought RSI on the daily chart suggests over-extension after a month-long rally.
A pullback is necessary for the bulls to catch their breath. A drop below 7530 and then 7470 further weighs on short-term sentiment as profit-taking intensifies.
The index is about to test 7380, a fresh demand zone from the November-December double top on the daily timeframe. The bulls need to reclaim 7540 before a rebound could gain traction.
