Review and dynamics
On the daily chart the index FTSE100 has broken down support level of 6900.0 (ЕМА50 and the lower line of the ascending channel). Steady growth in the index FTSE100 has suspended in the middle of the last month and at the beginning of this month the index was in the negative territory. Up to date, the index FTSE100 has grown by 10% or 600 points to the level of 7100.0.
In our previous review we presume that correction to the support levels of 6940.0 and 6900.0 is possible. Uptrend will continue as long as the price remains 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).
Now these levels have been broken down. The decline is likely to continue. On 4-hour, daily, weekly charts the indicators OsMA and Stochastic give sell signals. The targets of the decline can be at the support levels of .0 (ЕМА144) and 6600.0 (ЕМА200 on the daily chart). However, in the medium-term uptrend will continue.
Breakdown of the level 6600.0, which is close to the moving average lines ЕМА200 on the daily and weekly charts, may stop the upward trend in the index FTSE100.
However, the fundamental factors, such as policy of the Bank of England to continue extra-soft monetary policy in the UK, show that further growth in the index is more likely with the short-term downward technical corrections.
If the rise in the price resumes, the targets will be at the levels of 6900.0, 6940.0, 7030.0, 7100.0 (highs of April 2015 and 2016) and 7200.0.
Support levels: 6800.0, 6700.0, 6670.0 and 6600.0.
Resistance levels: 6900.0, 6940.0, 7030.0, 7100.0, 7180.0 and 7200.0.
Sell Stop: 6820.0. Stop-Loss: 6850.0. Take-Profit: 6700.0, 6670.0 and 6600.0.
Buy on the market. Stop-Loss: 6820.0. Take-Profit: 6900.0, 6940.0, 7030.0, 7100.0, 7180.0 and 7200.0.
Indicators give sell signals
Breakout of the level of 6900.0