The UK 100 Index has traded lower this morning as the price ran into resistance in the 7717.94/7714.00 area last week. This has put a cap on price in the short term as the breakout from the apparent bull flag is retested as support at 7640.00. A successful retest of this trend line would lead to a drive higher to the 7800.00 area with minor resistance on the way at 7771.50. A push above these levels looks to test the previous highs at 7900.00 which could eventually lead to a move to 8000.00.
Support for the pair can be seen at the falling trend line with a loss of this support resulting in a drop back into the channel. Supports come in at 7600.00 and 7567.00. A loss of the latter targets the low at 7488.72 with 7500.00 on the path to that support. A drop under the 7488.72 level could lead to a fall to the 7333.50 area where the bottom of the channel is currently stationed with a bounce from this support likely to find plenty of buyers.
The WTI price has dropped back under 7000 ($70.00) after reaching a high of 7400.00 recently. This fall is due to increased Libyan production and runs counter to the draw downs that are being seen in the US that put upward pressure on prices. Resistance at 7000.00 is keeping price down in the very short term with the 7076.38 area acting as another restriction to higher prices. A break above 7100.00 can lead to a retest of 7290.00 and a move up to the high at 7400.00.
A push under 6900.00 can see the support at 6832.41 tested followed by 6800.00. This can result in a drop to 6650.00 where buyers will start to emerge down to 6450.00followed by 6342.58. A loss of this level could result in a bigger bearish move to 6184.38 followed by 6000.00 and the 5989.97 area.