Scenario

Timeframe - Intraday

Recommendation - BUY STOP

Entry Point - 6280.0

Take Profit - 6375.6

Stop Loss - 6242.0

Key Levels - 5891.2, 5904.4, 6013.5, 6096.7, 6128.1, 6177.9, 6200.0, 6212.6, 6242.0, 6279.9, 6320.9, 6343.2, 6375.6

Alternative scenario

Recommendation - SELL

Entry Point - 6240.0

Take Profit - 6100.00

Stop Loss - 6300.00

Key Levels - 5891.2, 5904.4, 6013.5, 6096.7, 6128.1, 6177.9, 6200.0, 6212.6, 6242.0, 6279.9, 6320.9, 6343.2, 6375.6

Current trend

The FTSE100 index grew on Tuesday. For major European stock indexes yesterday’s growth was the fifth bullish trading session in a row amid situation around the forthcoming UK’s EU membership referendum.

The vote is due to take place on Thursday, and referendum polling data showed that the number of Britons who oppose a British exit from the EU exceeds the number of Brexit supporters. However, uncertainty still remains, and as the date of the referendum is approaching, the situation in the market is getting tenser.

Support and resistance

Bollinger Bands on the daily chart is directed horizontally and tends to start growing. The price range remains very wide and is showing almost no changes. MACD is growing and keeping a buy signal. Stochastic is still moving up but has already entered the overbought zone.

The indicators recommend waiting for clearer trading signals before placing new orders.

Support levels: 6212.6, 6200.0, 6177.9, 6148.4, 6128.1 (20 June level), 6096.7, 6047.4, 6013.5, 5956.7, 5904.4, 5891.2 (16 June low).

Resistance levels: 6242.0, 6279.9 (21 June high), 6320.9 (7 June high), 6343.2, 6375.6 (21 April level).

Trading tips

Long positions can be opened after the level of 6279.9 is broken out (with appropriate indicators signals) with the target at 6375.6 and stop-loss at 6242.0. Validity – 1-2 days.

Short positions can be opened after the price turns down at the current levels. For example, a price reversal at the level of 6279.9 and a breakdown of 6242.0 might lead to a fall towards 6100.00. Stop-loss should be set at 6300.00. Validity – 1-2 days.