FTSE Up After Crashing To Four-Month Low, Longs Favoured In Short-term

Early in the day today, results from the UK referendum on EU membership brought victory to the “Leave” camp over the “Remain” camp. Global markets went into catastrophe mode – the pound went into a free-fall to hit a record low of 1.32217 against the US dollar – the lowest in over 31 years. Shocked by the result, the UK’s FTSE 100 index opened its trading session on Friday at 5767.00, creating a very large gap-down, wiping out more than 130 billion pounds of market value . On the hourly chart, after losing serious ground, the FTSE is on track to gather itself, and is attempting a small up-move from the four-month low. RSI (14) has escaped the oversold territory, pointing upwards, indicating that bears may be covering positions and exiting the market. The index is expected to inch up a little for the rest of the day today.

Trade suggestion

Buy stop at 6057.61, Stop loss at 5969.78, Take profit at 6176.70

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