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.

FTSE 100 Technical Highlights:

  • FTSE looking to test 2009 trend-line soon
  • Market on the verge of breaking support levels

For our analysts intermediate-term fundamental and technical view on the FTSE and other major indices, check out the Q3 Global Equity Markets Forecast.

FTSE 100 looking to test 2009 trend-line soon

During the recent bounce in major global indices the FTSE, along with the DAX, was a laggard, which is it is no surprise that the index is already heading towards a test of the June low. Recently, the 200-day along with some price support was enough to keep a bid in until yesterday.

The June low is the last of support until a bit of open space opens up to the trend-line off the bear-market low in 2009. This would of course make for another important test of the long-term trend. The first test came in December and due to its success, each successive test (maybe soon) will become increasingly important to pass.

If the market eventually breaks it, it doesn’t necessarily a major bear market will ensue, but it does certainly elevate the risk of that being the case. For right now, from a tactical standpoint existing shorts may want to continue to see how much selling pressure can come in, using bullish price action as a potential exit signal.

While existing longs may be prudent to tread carefully here until positive price behavior becomes apparent, ideally around support. New positioning is tricky at the moment for either side. For shorts, support is support until its not and could induce a bounce at any time, and for longs buying into the teeth of a decline can be a difficult endeavor.

Check out this guide for 4 ideas on how to Build Confidence in Trading.

FTSE Daily Chart (watch June low)

FTSE 100 Price Outlook: Test of ‘The’ Bull Market T-line May Come Soon

FTSE Weekly Chart (Bull market trend-line)

FTSE 100 Price Outlook: Test of ‘The’ Bull Market T-line May Come Soon

You can join me every Wednesday at 9 GMT for live analysis on equity indices and commodities, and for the remaining roster of live events, check out the webinar calendar.

Tools for Forex & CFD Traders

Whether you are a beginning or experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX