I am not a huge fan of pattern analysis, believing it to rely too heavily upon subjective interpretation. However, there are some formations that are so stark and widely-watched, that I simply have to pay attention. The FTSE 100’s upwards breach of its multi-month “triangle” pattern is exactly one such formation. If the UK large-cap index can build upon its recent progress, some very substantial gains indeed could be in prospect. A major challenge is close at hand, though, in the form of its 2011 highs at 6107. I would expect some hesitation at these levels, culminating in a successful move above them.
