Review and dynamics
The FTSE100 index is growing in the ascending channels on the daily and weekly charts with the upper limit near the level of 7200.0, and completely regained the losses sustained after the Brexit referendum The index FTSE100 has grown by over 600 points, or almost 10% after the referendum.
Uptrend in the index will continue as long as it maintains position above support levels of 6940.0 (ЕМА200 on 4-hour chart) and 6900.0 (ЕМА50 and the lower limit of the ascending channel on the daily chart).
On the weekly and monthly charts the indicators OsMA and Stochastics give buy signals; on 4- hour and daily charts the indicators give signals to sell. The price may undergo downward correction to support levels of 6940.0 and 6900.0, or even a deeper correction to the levels of 6650.0 (ЕМА144) and 6575.0 (ЕМА200 on the daily chart). However, general positive trend will continue.
The change in the uptrend can be caused by breakdown of the level of 6575.0, near is near the moving average lines ЕМА200, ЕМА144 on the weekly chart.
However, the policy of the Bank of England to continue extra-soft monetary policy in the UK or introduce even more monetary policy easing gives all grounds for the further rise in the index, may be with the short-term downward technical adjustments.
The rise from the current levels may continue with the targets of 7100.0 (highs of April 2015and the highs of 2016) and 7200.0.
Alternative scenario of the termination of the uptrend is possible after consolidation of the price below the level of 6575.0.
However, meanwhile, long positions are preferable.
Support levels: 6940.0, 6900.0, 6870.0, 6815.0, 6650.0 and 6575.0.
Resistance levels: 7100.0, 7180.0 and 7200.0.
Sell Stop: 6975.0. Stop-Loss: 7030.0. Take-Profit: 6940.0, 6900.0, 6870.0, 6815.0 and 6575.0.
Buy Stop: 7038.0. Stop-Loss: 6990.0. Take-Profit: 7100.0, 7180.0 and 7200.0.
Key level of 6575.0
In the uptrend