7,550 major technical resistance : FTSE 100 technical analysis
FTSE 100 technical analysis indicates that sellers may use a correction back towards the 7,550 level as a chance to short the index. Price is currently trading within a rising price channel on the four-hour time frame.
The FTSE 100 has been coming under selling pressure as UK stocks sell off over concerns about the spread of the coronavirus and fears over British PM Boris Johnson’s hard-line stance going into negotiations with the EU.
FTSE 100 technical analysis shows that any corrections back towards the 7,550 level may be used as a major selling opportunity over the coming days.
FTSE 100 medium-term price trend
The UK 100 is starting to come under heavy downside pressure after being rejected from the 7,796 resistance level last month.
FTSE technical analysis shows that bulls failed to move price above the July 2019 price high, and negate a bearish head and shoulders pattern.
Fears over the spread of the coronavirus has hit companies within the FTSE 100 hard, additionally, British PM Boris Johnson has struck a hardline approach to the upcoming Brexit negotiations with the European Union.
The inverse relationship the UK 100 has with the British pound has also weighed on the index over recent days.
FTSE 100 technical analysis shows that any corrections back towards the 7,550 level could be a major selling opportunity.
The medium-term downside potential in the FTSE 100 could easily extend down towards the 6,850 level, which would then help to form a massive bearish reversal pattern on the daily time frame.
FTSE 100 short-term price trend
FTSE technical analysis over the short term is confirming the importance of the 7,550 level, with the index’s 200-period moving average on the four-hour time frame located at this level.
A rising price channel is currently in play across the mentioned time frame, and highlights that the FTSE 100 has recently bounced from the bottom of the channel.
Short-term technical analysis also shows that a sell signal has been generated, with the 50-period moving average crossing over the 200-period moving average on the four-hour time frame.
The middle of the price channel is located around the 7,470 level, and remains a likely upside target if the recent bounce from the 7,230 level continues.
FTSE 100 technical summary
UK 100 analysis shows that the index could decline towards the 6,850 level if price continues to trade beneath the 7,555 level.