FTSE 100: Testing the 6294 resistance, recovery to reach the 200-day ma at 6863 – Credit Suisse

FTSE 100 is now challenging the 50% retracement of the whole Q1 sell-off at the 6294 level and would extend the recovery toward the 200-day at 6863 on break of the mentioned resistance, economists at Credit Suisse brief.

Key quotes

“FTSE 100 spotlight turns to resistance at 6294 - the 50% Fibonacci retracement of the whole Q1 sell-off - which is expected to cap the market.” 

“If the 6294 resistance is broken, the market could then extend its recovery further toward the crucial 200-day average, currently at 6863.” 

“Near-term support is seen at 6117/10. Below 6042 would warn of a deeper setback with support seen next at 6015, then 5954/47 – the 50% retracement of the rally from mid-May, which we look to try and hold.”