News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here:
  • Google finance-related search interest in 'Evergrande' has almost overtaken 'Covid'. 'Taper' doesn't even register on the scale
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:
  • GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt. Get your market update from @HathornSabin here:
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here:
  • Gold could suffer further near-term losses due to rising U.S. Treasury yields and a weak technical picture for price action. Get your weekly gold forecast from @DColmanFX here:
  • Gold has been trending lower after failing to clear resistance in the $1835 area earlier this month. Get your $XAUUSD market update from @DColmanFX here:
  • Key break here in the 10-year #Treasury yield as it rises to the highest since late June Took out 1.4230 resistance, and the 100-day SMA Eyes now on the 38.2% Fib extension at 1.4775 Also potential falling resistance from March
FTSE 100: Rejection at Resistance Points to Weakness Ahead

FTSE 100: Rejection at Resistance Points to Weakness Ahead

Paul Robinson, Strategist

What’s inside:

  • The FTSE 100 closes below criticial trend-line for a second day in a row
  • Yesterday’s rejection upon attempt to reclaim support bolsters bearish case
  • Looking for follow-through towards 6700/6776, with bigger picture implications on a break

On Tuesday, when we last discussed the FTSE 100 it was slipping below the critical June trend-line it’s been tight-roping for the past couple of weeks. It ended the session closing under, but wasn’t the most convincing break as a late-day rebound helped pare more than half of its losses. However, what was more convincing from a bearish standpoint was the attempt yesterday to recapture the trend-line and subsequent rejection in afternoon trade. Yesterday’s price action helped further cement the importance of the trend-line we’ve been watching so closely. But instead of it acting as support it now acts as a reference of resistance.

Rejection bars often times, within the proper context, lead to follow through not long after the event takes place. If this is to be the case, then the FTSE should not overtake the Wednesday high of 6845 and ultimately not close above the trend-line. If it does, then a neutral at the least, possibly bullish stance will be warranted.

With continuation to the downside in mind, we will look to the Tuesday low at 6729 as minor support, with the 8/4 trend-line/neckline as our next signficant level of support. At this time the line runs through roughly 6700. Below 6700, the 11/4 low at 6676 comes into play. A clean closing break below 6700/6676 would be considered a signficant event as the developing 'head-and-shoulders' pattern dating back to August would trigger. We will delve further into this should it become relevant.

FTSE 100: Daily

FTSE 100: Rejection at Resistance Points to Weakness Ahead

Created with Tradingview

See our Trading Guides for educational resources and forecasts. For a list of live events conducted daily to not only help educate but provide trading ideas, please see our webinar calendar.

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.