- Next support is currently 62.68 points away at 7,765.32
- Price action is currently stuck around the active Fibonacci support level of 7,727.72
Having fallen 110.14 points in 5 days, Yesterday's session continued down the same path: the FTSE slides down from 7,788.37 to 7,702.64, losing 85.73 points (1.1%) today.
The index has been trending positively for about a month. The FTSE hit a significant low of 6,826.2 around 6 months ago, but has since recovered 14.1%.
The MACD index is indicating that momentum is shifting from bullish to bearish following a negative crossover. When the MACD falls below the signal line, it is typically considered to be a bearish development favoring short positions. The FTSE formed a session range of 7,691.25 to 7,788.37 leaving buyers and sellers highly concentrated around an active Fibonacci support level of 7,727.72. In contrast, the FTSE's lower Bollinger Band® is at 7,636.51, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. The FTSE could begin to recover as it approaches significant support, now 62.68 points away from 7,765.32. Dipping below could be an indication that further losses are ahead.
Overall, looking at the technical analysis landscape, it seems that although indicators are mixed and some are pointing in different directions further drawbacks may be next for the FTSE.
Fundamental indicators – United Kingdom Composite PMI came out at 54.9, while a consensus of analysts was expecting 53.9.
In the meantime, negative performances are also seen in other markets, after ending yesterday's session at 33,400, Dow Jones lost 272.26 points and is trading around 33,128. CAC lost 0.85% yesterday and closed at 7,403.83.
Other assets are showing positive performances as Hang Seng went up by 1.27% yesterday, and closed at 19,949.
Upcoming fundamentals: United Kingdom Construction PMI is projected to outperform its last figure with 51, having previously been at 50.7. The figure will be published today at 08:30 UTC.