FTSE Technical Highlights:
- FTSE pressing on support, will it hold?
- Broader topping pattern remains big-picture focus
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FTSE pressing on support, will it hold?
U.S. markets have been getting crushed, but even as such Europe which has recently had plenty of its own selling is trying to check downside momentum for now. The FTSE is currently caught between support and resistance amidst its downtrend.
Support currently clocks in right around 6650, an area of support from late-2016 that has held earlier in the month. That level looks fragile at the moment, but should we see a bit of a lift from here it won’t be long before resistance in the 6850/900-area comes into play.
With the trend and tone negative it seems unlikely forces will be strong enough to push the FTSE through any kind of resistance. The more likely scenario is a breaking of support.
Looking at the big-picture, the long-term ‘RST’ (Reverse Symmetrical Triangle) is in full effect and points to an eventual decline in 2019 toward the 5800/5500 zone. A pop to start the year may develop if the oversold U.S. markets bounce but strength is viewed as an opportunity to sell considering the bearish macro-tech backdrop.
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FTSE Daily Chart (pressing on support)
FTSE Weekly Chart (‘RST’ Formation, 5800/500 targeted)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX