FTSE 100 fut: New rallies coming – Natixis

As the daily stochastic has picked up for FTSE 100 fut; Micaella Feldstein, Research Analyst at Natixis suggests that they favor new rallies in the next days but only a break of the resistances at 7338-7350 (daily Bollinger moving average) would lessen the risks of a dip back to the supports at 7166-7181 (weekly Bollinger lower band). 

Key Quotes

“We don’t favor such a view: the daily downside parallels and the fact that the weekly indicators have turned bearish rather plead for a new leg lower.”  

“We’ll watch out 7166-7181 major supports whose break would unleash added downside potential to 7074-7085 (around 2015 high and rising trendline) ahead of 6930 and 6880 (monthly Bollinger moving average).  The resistances are at 7280-7306, at 7338-7350, at 7450 and at 7545.”