FTSE100
FTSE100 index fell on Thursday, being down over 1% so far, driven by weaker than expected UK retail sales and hawkish BoE.
The price remained at the back foot in past two days after recovery attempts were rejected at 7555, but showed indecision that was shaped in Wednesday’s long-legged Doji.
Fresh acceleration lower on Thursday generated stronger bearish signal, which could result in extended correction of bull-phase from 7032 (19 Apr low) to 7587 (02 June low).
Today’s action completed two bearish patterns that now strongly support negative scenario.
Completion of Failure Swing pattern on daily chart after support at 7410 (09 June low) was taken out, as well as formation of asymmetric H&S pattern on daily chart on break below the neckline at 7421, generated bearish signal.
Dips were so far contained by next pivotal support at 7375 (Fibo 38.2% of 7032/7587), with firm break here needed to confirm reversal and open next supports at 7341 (55SMA) and 7294 (100SMA).
Consolidation above 7375 handle could be expected before bears resume, as near-term studies are oversold.
Daily Tenkan-sen in steep descend offers solid resistance at 7463, with additional bearish pressure coming from 10/20SMA bear cross which formed at 7494.
Res: 7421; 7463; 7494; 7543
Sup: 7375; 7341; 7310; 7294
