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FTSE 100 Technical Outlook – Working Towards March Retest (or Worse)

 The FTSE 100 grind lower may soon come to an end because the trend could begin to accelerate. There was a series of lows around 5780 that forged a wedge, that has been broken. This has the bottom-side of channel dating back to early June live .

It has been a stubborn structure, or robust, however you would like to explain the continued channel, which is why a breach outside would likely see price gain momentum. during this case, bringing the March lows near 4900 into play, or worse.

A move towards the March lows would have a trend-line (on a log scale weekly chart) live from the late-80s. this is often where the coronavirus low was found, but with it upward sloping it's now about 300 points higher (~5200).

Perhaps a higher-low is made at the trend-line, or we get a full retest and perhaps break of the March low. Hard to mention at this juncture, we’ll got to see what's transpiring should the FTSE move thereto point.

First, though, the underside parallel of the multi-month channel must be broken convincingly, because it has flirted with doing so but has yet to shut beneath. For as long because it holds the outlook remains neutral to bearish, but difficult to justify an aggressive bearish bias. Longs don’t hold much appeal at this juncture outside of maybe some quick flips as price could still rebound off declining support.