The FTSE 100 is searching for a directional breakout in the short term, with the index remaining increasingly well supported on technical pullbacks.
UK 100 analysis shows that a breakout above the 6,190 level could cause the index to surge by nearly 600 points.
FTSE 100 medium-term price trend
The FTSE 100 recently reversed from the 6,150 level, after bulls failed to breach the multi-month high, around the 6,190 level.
FTSE 100 technical analysis shows that the index is trading within a large rising-wedge pattern on the daily time frame.
The rising-wedge pattern is currently located between the 5,800 and 6,500 levels. As long as the price trades above the 5,800 level then the index could rally towards the top of the rising wedge.
Traders should note that long-term trendline resistance on the daily time frame is located around the 6,600 level.
The FTSE 100 declined by nearly 2,000 points when the mentioned trendline was broken in March this year.
FTSE 100 short-term price trend
FTSE technical analysis over the short term highlights that bulls are in control while the price is trading above the 5,730 level.
The four-hour time frame is showing that a head-and-shoulders pattern has yet to be invalidated.
The size of the head-and-shoulders pattern indicates that the FTSE 100 could still fall towards the 5,000 level, if the 5,600 level is broken.
It is noteworthy that if the pattern is invalidated then the FTSE 100 could rally towards the 6,800 technical area.
Watch out for a major reaction in the FTSE 100 around the 6,100 level this week.
FTSE 100 technical summary
UK 100 analysis shows that the 6,190 level remains critical resistance. A breakout above the 6,190 level could cause the index to surge towards the 6,600 to 6,800 technical area.