FTSE remains at the back foot on Monday, after opening lower last Friday and being unable to fill the gap (Friday’s recovery attempts were capped at 7374).
Early Monday’s trading is directionless, holding within 30-pips range and so far supported by Fibo support at 7326 (61.8% of 7254/7444 upleg, reinforced by rising 20SMA).
This marks pivotal support and firm break lower would increase risk of return to correction low at 7254.
However, extended consolidation could be anticipated while the latter support holds, with fresh upside attempts to remain in play, as overall picture is bullish.
Return above 7400 handle is needed to signal an end of pullback from 7744 (fresh record high, posted on 16 Mar) and shift near-term focus higher.
Res: 7357; 7374; 7398; 7424
Sup: 7326; 7309; 7298; 7254