FTSE 100 stock index continues to move within the correction and the downward channel. At the time of the publication of the forecast, the index is trading at 7210. Moving averages indicate a bearish trend. At the moment, we should expect an attempt to continue the correction and test the resistance level near the area of 7265. Where should we expect a rebound and the continuation of the fall in FTSE 100 quotes to the area below the level 7005.
FTSE 100 Forecast and Analysis May 31, 2019
In favor of the fall of the stock index quotes, a test of the resistance line on the indicator of relative strength index (RSI) will be made. The second signal will be a rebound from the upper boundary of the downward channel. Cancellation of the option to reduce the quotations of the index will be a strong growth and the breakdown of the 7285 area. This will indicate a breakdown of the upper limit of the downward channel and continued growth of the FTSE 100 with a target above the 7425 level.
FTSE 100 Forecast and Analysis May 31, 2019 implies an attempt to test the upper limit of the downward channel near the 7265 area. Then, continuing to fall to the area below the level of 7005. A test of the resistance line on the relative strength index (RSI) will be used to lift the FTSE 100 quotes. Cancellation of the fall option will be a strong growth and the breakdown of the 7285 area. This will indicate continued growth with a target above the 7425 area.