Bottom line: FTSE long term structure remains bearish against 7724 resistance. Over the near term as well, the indice has successfully carved lower highs around 6300/50 levels. Bears might be poised to remain in control and a push below 5750 would be encouraging.

 Fundamental Outlook:

FTSE has managed to close the last week marginally high by +0.38%, closing around 5970 mark. The indice would be taking its cued from global indices Dow Jones, SPX500 and NASDAQ over the next several weeks as risk assets remain vulnerable for another round of selloff. Also the probability of a hard Brexit might induce further volatility and selling pressure.

Technical Analysis:

FTSE managed to recover some lost ground over the last week as the indice pushed higher towards 5900/50 mark. It had earlier dropped through 5760/70 lows before finding some support. Immediate short term resistance is seen through 6130 mark as bears prepare to stay in control.

FTSE had earlier dropped from sub 7700 highs through 4750 in March 2020. The entire drop was an impulse wave, which has been retraced by a corrective rally towards 6500 levels in June. Since then, the indice has been carving series of lower lows and lower highs.

Further, the indice has also managed to carve 6300/50 potential resistance and counter trend rallies are expected to stay capped below that mark. Also note that recent price action has been that of a decreasing resistance and constant support around 5750/70 mark.

A break below this wedge formation might be encouraging to bears as they target to push through 4750 lows in the next several weeks. Alternately, if 6300/50 resistance is taken out, it could change the bearish view over the short term.

Most traders might be preparing to initiate fresh short positions around 5900/6000 resistance zone, with protective stops above 6350 handle and projected targets below 4750 levels respectively. Watch out for a break below 5750, for further acceleration lower.

Prepared by

Harsh Japee, Technical Analyst.

FTSE Chart

Disclaimer:

This market commentary and analysis has been prepared for AT Global Markets UK Ltd (ATFX UK) by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such.

You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

 Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients.

The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。