FTSE 100 Technical Analysis

Friday, 8th February 2019 11:57 - by Rajan Dhall

Interesting times for the equity markets at the moment. Issues include German, British and Australian downgrades to growth. An economic slowdown in China, although they are throwing the kitchen sink at stimulating the markets. I have pointed out some of the key technical levels on long, medium and short term charts. Lastly, soon enough we will be looking at news from the US-China trade deal which will have a significant impact on global growth. With this in mind managing risk is key and that is the main use for the technical levels on the charts.

Monthly Chart: Bullish

• No need to panic still in a firm uptrend
• Would be wrong on the break of 6536
• Trendline break would also confirm bearish bias
• Current support base looks very stong

Weekly Chart:

• Still bullish but 2 areas of concern
• The first area of concern is the internal trendline
• We are currently struggling at the 2015 high
• A break below 7000 next week would confirm a rejection of the 7115 resistance

Daily Chart:

• Nice stop at the resistance area on the daily chart (7200)
• There is normally a retest of the trendline when we see a break like the one marked on the chart
• Could see support at 6910
• If we break higher then 7638 is the next technical resistance

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.