FTSE has been tracking an intraday three-wave pullback from recent highs, described as an Elliott Wave Zig Zag that delivered a clear three-wave decline from the peak. The support area was framed via the Equal Legs measurement using a Fibonacci extension tool, with the projected level set relative to wave b; the ideal buying zone was placed at 10370.44\u201310275.23. At the time of the earlier one-hour chart analysis dated 22 June 2026, the correction was still deemed incomplete, with scope for further downside into that marked zone.<\/p>\n
By 3 July 2026, the index had found demand in the Equal Legs area as price set a low at 10333.17 and then turned higher. From that point, FTSE moved into a rally phase following the end of the corrective leg, with attention returning to the prospect of a resumption towards new highs should price continue to hold the support region.<\/p>\n
With the FTSE index having found a solid base at 10333, we see the recent pullback as a completed corrective phase. The immediate bounce from this level confirms that buyers have stepped in, validating the view that the broader uptrend is set to resume. This presents a clear opportunity for bullish positioning over the next several weeks.<\/p>\n
This technical signal is supported by strengthening fundamentals. The latest data from the Office for National Statistics confirmed UK inflation hit the Bank of England’s 2% target last month, easing pressure for further rate hikes. This comes as recent GDP figures showed the economy growing by a solid 0.7% in the second quarter, providing a stable backdrop for corporate earnings.<\/p>\n
For those looking to capitalize on the expected upward move, we believe buying call options with August and September 2026 expirations is a sound strategy. Focusing on strike prices slightly above the current market level offers leveraged exposure to the anticipated rally. We see implied volatility decreasing after the bounce, making option premiums more attractive now than they were last week.<\/p>\n
Alternatively, selling out-of-the-money put credit spreads is another way we are approaching this. By setting the short strike of the spread below the recent 10333 low, traders can collect a premium while defining their risk. This strategy profits if the FTSE continues to rise, moves sideways, or even falls slightly, as long as it stays above the key support level.<\/p>\n
For traders who established long futures positions near the low, we now view these trades as essentially risk-free. It is prudent to move stop-loss orders up to the entry point to protect capital. This discipline allows us to hold the position with confidence as we look for a move toward new highs.<\/p>\n\n\n\n