We are drawing both a slightly ascending parallel channel and a wedge, as the FTSE's range is clearly tightening. We have broken out of the cup and handle on Monday, and daily momentum, on some indicators, is beginning to turn back pointing north: this is not confirmed though.
I am probably going to stay on the sidelines for today as I'll be running herrands and be at the desk sporadically. In any case, we are quoted in the 4250s: weakness could come here at open, and other areas to look for weakness are the 4270-4280s or else 4300 remains the area of resistance for now. Otherwise, look for strength in the 4240s. At this point, it would be advisable to be humble in profit taking, until a clear breakout occurs.
