The FTSE 100 recoups losses supported by strong performance in cyclical stocks. The index has bounced off the critical support (6970) from the daily chart.
An oversold RSI near the psychological level of 7000 has attracted bargain hunters. A bullish MA cross confirms the upward bias. 7100 from the latest sell-off is key resistance and its breach could raise bids to the triple top at 7210.
In the meantime, the RSI’s overbought situation may temporarily limit the buying power and the bulls would have to wait to buy the dip.
