FTSE100 has made quite a rally since mid-February from the 5500 price level towards 6200 a couple days back. Price has magically stopped right at the long-term resistance trend line coming from the April highs of 2015. The previous time this trend line was tested and price got rejected, was at early December of 2015 when price was at 6450. We all remember the sell off that followed towards 5500.
The Stochastic oscillator is at the same overbought levels as it was in the previous 3 reversal highs marked in the daily chart above. Price is however above the Kumo (cloud) and this is the only bullish sign in the chart. The rise off the 5500 lows is clearly corrective in nature (thus far) as the formation consists of a clear 3 wave pattern.
Concluding, I believe at least a short-term bearish reversal will be seen over the next few sessions. I have turned bearish FTSE100. Thank you for taking the time to catch up on my thinking.