Technical outlook:
The last leg rally for FTSE has been highlighted here on 4H chart. The entire rally that began in March 2018 from 6850 odd levels, and extended through 7900 levels is looking in danger now. The reversal signs are strong with its channel support line already broken. Please also note that a price support level at 7700 level has also been broken, leaving enough room for the bears to take control back on any intraday rallies here. Looking into the wave counts as well, the entire rally between 6850 through 7900 levels had unfolded into 5 waves labeled (1) through (5) here. The impulse wave terminated at 7900 levels at a higher degree before reversing sharply lower and breaking below its trend line support as well. If the above counts hold true, any intraday rallies should be taken as an opportunity to go short. We shall update the wave counts again around the first week of June 2018.
Trading plan:
Remain short for now, and also sell around 7700/20 levels again, stop above 7900, a target is open.
Fundamental outlook:
There are no major fundamental events left for the day.
Good luck!
