Over the past 6 weeks the FTSE has repeatedly pushed above 4500, only to fall back on each occasion.  The best recent closing high was 4506 on 1st June and the other intra-day highs of the past 6 weeks were 7 May 4520, 19 May 4512, 20 May 4504 and 10 June 4505.

There have been two lows at 4295, creating a double bottom, in between these repeated attempts at 4500 and therefore we now have a very clear recent trading range of just over 200 points established on the FTSE.  The key question is in which direction are we going to break out of this trading range?

There are a couple of key moving averages also currently muddying the picture.  The FTSE has been trading around its 200-dma (currently 4309) during the past 6 weeks but has now closed above it for the whole of June thus far.  The FTSE has also run into its 50-week moving average (currently 4484) in the last two weeks and this 50-wma is providing some resistance at the moment.

However in June so far the FTSE has traded in the upper half of its recent trading range and it looks like the odds now favour a break higher away from this 4295-4506 consolidation area.  Watch the price action for two daily closes above 4506 and let the market show us where it wants to go next.