However, the challenge it faces as it lingers around 722.25p is whether it can push beyond 732.50p resistance or retreat to 697.80p. Yesterday's US Fed decision won't help the former case and the indecision currently exhibited in the market suggests the prior two days of gains are only window dressing in the broader 2-month decline.
The question is what will it do when if it makes it back to 697.80p? Too much time has passed to consider this a retest of support so the likely outcome is a drop into the former base range and a hunt for an area of demand. A drop all the way to 5550p is perhaps a little extreme given some form of rally would be expected during the interval. There was pivot action in the 635-642p range and this might be the area to watch on the part of bulls.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts, and stock charts website