FTSE 100 Failing to Inspire, Support About to Come Under Fire
- FTSE 100 failing to muster a bounce from just above important support zone
- Favoring more down-side, watch a break of 7100
- Levels outlined
The last time we looked at the FTSE 100, on Wednesday, it was bouncing fairly aggressively in the morning, but by day’s end that had pretty much failed entirely. Yesterday was a nothing day, and so far in early trade today price action isn’t very inspiring, either. The fact that the FTSE sold off aggressively to just above important support by way of the old record highs (intra-day, October – 7130, closing, 4/’15 – 7104), and is showing virtually no bounce isn’t a good sign (at least not for the longs).
We’re still sitting close to a big level of support, so any drop from here could find it challenging to gain momentum, but if the FTSE takes out 7100, a clear breach of the old highs, watch for increased selling pressure. Levels to watch on the down-side are 7067, then right around 7000, where the June trend-line lies and the high of a key reversal event on 11/10 (6997 to be precise).
To turn this ship around we will need to see some ‘oomph’ develop, buyer willingness to sustain more than an intra-day bounce. Until then, we’re in the neutral to bear camp.
FTSE 100: Daily
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.