FTSE 100 reverses downside trend line break

We covered the potential for the FTSE 100 to extend on the downside earlier today, if it busted below the noted, rising trend line that was in place at 10,295. Well, as we also covered, that is exactly what it did. The index fell back to 10,238, but that was some while back. 

Since then the index has recovered back above the trend line and extended higher. That is not a move necessarily in its own right, but driven by wider dynamics, namely the fall in the oil price since the earlier FTSE breakdown, coupled with a rebound elsewhere across Europe and a lower oil price and dollar. All of these things have combined to help the FTSE traded back to around 10,325 since recovering from the earlier low. So, was that a false downside break?

Well, not exactly because there was around a 60 point move on the table on that break, but for sure it has not persisted this side of the US opening and now we see where the price action elsewhere leads us this afternoon. The FTSE 100 is currently trading at 10,323