Despite having dipped below 5680, the FTSE is not yet in properly bearish mode in my view, says Warren Firth at www.globalprimepartners.com.au.
The three-day swing-chart remains in an uptrend. I see the present action as similar to the weakness that occurred in early 2011, after which the FTSE recovered its losses within a month. Stay long, targeting 6491. Only exit positions on sustained weakness below 5600.
City Trades are written by selected external contributors and are based on the interpretation of patterns on a share price chart, rather than on fundamental analysis of the company's business or prospects.