FTSE London Daily Chart; New Record High; 14-Day Winning Streak Ends; Upper Band Violation; Overextended; Overbot; Negative Divergence Developing

The FTSE prints another record high at 7354.14 but falls on its sword unable to close at a new record above Friday's closing high. The 14-day winning streak ends. Price has been violating the upper standard deviation band during the rally so the middle band at 7157, and rising, is on the table. Price is overextended above all moving average lines and needs a mean reversion lower.

The FTSE is overbot with the RSI and stochastics so a pull back is needed for a rest. Negative divergence is developing and will create a spankdown now in this daily time frame but note the long and strong MACD line. This will create enough oomph for price to return back to the current highs in a few days after an initial pull back occurs. At that time all the indicators will likely be negatively diverged creating a more substantive top and sell off in the daily time frame. If the FTSE stalls here, then the pound (sterling) will likely not move much lower.

The ADX is off the charts verifying the very strong trend which is obviously up. This reinforces the forecast that price will likely return to current highs after a pull back occurs in this daily time frame. BOE Governor Carney saved the day after Brexit promising stimulus as far as the eye can see. This saved the stock market by pounding the pound. The central bankers are the market.  In recent weeks, UK PM May's rhetoric about a hard break for the Brexit creates further softness in the pound and more upside rally juice for the footsie. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.