Review and dynamics
Although a new descending channel has been formed on the daily chart, uptrend in the index FTSE100 continues. The index is still above support levels of 6705.0 (ЕМА144), 6640.0 (ЕМА200 on the daily chart).
The rise in the index FTSE100, which started after Brexit referendum, has slowed down in the middle of this month and the index may start next month in the negative territory. Up to date the index FTSE100 has grown by more than 600 points, nearly by 10%, up to the level of 7100.0.
At the moment the index is traded below resistance level of 6850.0 (ЕМА200 on 4-hour chart), and in the short-term ascending channel on 4-hour chart with the upper limit near the level of 6900.0. In case of breakdown of the level of 6850.0, next target will be at the level of 6900.0.
On 4 hour and daily charts the indicators OsMA and Stochastic give buy signals.
On the weekly chart Stochastic also give signal for the long positions, and the index is in the ascending channel.
Uptrend in the index will continue as long as the index remains above support levels of 6705.0 and 6640.0. If this level is broken down, and the price continues to decline, the target will be support levels of 6600.0 (ЕМА200 on the weekly chart) and 6570.0 (ЕМА144). Breakdown of these levels will prevent the development of the further uptrend in the index FTSE100.
However, based on the fundamental data (adherence of the Bank of England to the extra-soft monetary policy) we can assume that the rise in the index will continue and upward momentum will dominate. In this case the targets will be at the levels of 6900.0, 6940.0, 7030.0, 7100.0 (highs of April 2015, highs of , 2016) and 7200.0.
Support levels: 6800.0, 6705.0, 6640.0, 6600.0 and 6570.0.
Resistance levels: 6850.0, 6900.0, 6940.0, 7030.0, 7100.0, 7180.0 and 7200.0.
Sell Stop: 6785.0. Stop-Loss: 6850.0. Take-Profit: 6705.0, 6640.0 and 6600.0.
Buy Stop: 6855.0. Stop-Loss: 6810.0. Take-Profi:t 6900.0, 6940.0, 7030.0, 7100.0, 7180.0 and 7200.0.
In the ascending channel
Above support levels of 6705.0 and 6640.0