Never miss a story from Paul Robinson

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Paul Robinson

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

What’s inside:

  • FTSE 100 turns lower after trying to trade above top-side trend-line
  • April trend-line just below as support
  • One side or the other to give-way soon

Find out what’s driving GBP and the FTSE 100 in our market forecasts.

In one of last week’s pieces we were discussing the FTSE 100 and the lines of influence it’s trading between – big support below, minor resistance above. ‘Minor resistance’, though, is becoming increasingly ‘major’ as the market continues to fail around the top-side trend-line extending over from the January high across the March high and over price action since the middle of last month. Resistance does exist even at record highs.

Yesterday, the market tried to push on through, sporting solid gains at one point during the session, but eventually failed to put in a fairly sharp key reversal day. The failure made it the second one of force in the last couple of weeks. Despite treading in record territory there is a technical event which continues to keep an advance from maturing. Should the Wednesday reversal prove to be short-term bearish, there is a trend-line rising up from the low established in April which may help keep the market buoyed, and ultimately pinned up against the top-side trend-line. Given the intersection between the top-side trend-line and rising support something will have to give here soon.

A clean break and close above the top-side trend-line will take what has been a problematic line of resistance and turn it into a source of support, with no other visible levels of resistance ahead. While follow-through on yesterday’s rejection-day leading to a break of rising trend support could weaken the FTSE back towards a major area of support near 7400. The long-term 2013 trend-line passing over the 2015 peak and several minor highs since January and those peaks created as a result will be viewed as rather significant should the market decline.

FTSE 100: Daily

FTSE 100 – Turnaround Adds Importance to Line of Resistance

Paul conducts webinars every week from Tuesday-Friday. See the Webinar Calendar for details, and the full line-up of all upcoming live events.

---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.