FTSE100 Update - Where next?

The direction of the FTSE100 is more negative than positive, but it is still a guessing game as to how the latest moves will ultimately play out.

Daily chart

A downtrend with two lower highs and potentially a third in play right now. The arrows on the chart show the downward direction, but also the potential for upside if that downward trend tram line is broken.

MACD is negative. Two lower highs showing divergence on the chart in Feb and March. The headshake described in my update the other day looks like it may be happening again as MACD is currently near enough to the zero line to give bulls fresh hope of an upward move, but could easily reverse and go further into oversold territory. It's been some time since MACD did that so it is due.

20 DMA looks like it is just about to go through 50 DMA on the downside.

Support on the chart at between 6250 and 6300 needs to hold.

Weekly chart.

Still a lot to play for

MACD is going negative, but is still some way off the zero line. We still have higher highs on the MACD.

20 and 50 DMA still holding on this chart.

Trend tram lines and support lines below suggest that on this longer time frame chart we could have a decent sell off yet still be in a general uptrend.

Overall, things look more negative and it will be interesting to see if the FTSE holds and we get consolidation between 6250 and 6500 or bigger falls below 6250. Right now there is less reason to be bullish, although if this is a bigger bear market move then it is very early stages.

Charts below:

FTSE100 -Daily

FTSE100 - Weekly