The index is flat for the current year however last week gained more than 0.5% but made a narrow range week, creating an inside week that suggest a strong compression in the market.
Last week the index rose with a narrow range and close in the middle of the weekly range, in addition managed to close within previous week range, suggesting a lack of momentum and indecision among the investors.
The Stochastic is showing a strong bullish momentum and is above the 50 mid line.
The FTSE100 is in a well-established recovery phase since mid-February and is consolidating within a strong weekly resistance zone.
Expecting an upward move to a key level at 6,441 (scenario 1) on a break above the previous week high at 6,175 however a break below the previous week low at 6,042 could push the index down to 2015 year low at 5,760 (scenario 3).