A bigger top still forming for stocks averages – FTSE forecast

  • An indecisive tone across global stock averages over the past 2-3 weeks.
  • This has been as two competing influences have impacted markets; the belief in a strong re-opening of the global economy and ensuing demand for riskier assets versus the rise in new COVID-19 cases (particularly in the southern US states).
  • Here we look at the UK benchmark share index future, our FTSE 100 forecast for today and into July.

FTSE day trade outlook: Downside risks intact, despite bounce

A Monday-Tuesday rally stall just above the 6223 resistance from 6224, to then push lower through 6130/20 supports, to eave negative forces from last Friday’s failure back lower from 6223, after the midweek selloff (below 6048.5 and 6000/5987 supports), to 5986.5.

We see the negative theme resuming from the latter June selloff to close the support gap from mid-June (at 6146-45.5), plus from the mid-June selloff through various supports (including the bull gap at 6248-39), to aim lower Wednesday.

  • We see a downside bias for 6105.5 and 6067.5/66; a break here aims for 5986.5 and maybe 5930.5.
  • But above 6223/24 aims for 6267.5; through here targets 6302.5/10.5.

FTSE intermediate-term outlook

The early June rally to close the runaway bear gap from early March at 6282-6397 signalled an intermediate-term shift to a broader range seen as 6512.5 to 5930.5.

Upside risks: Above 6512.5 sets an intermediate-term bull trend to target 6871.5, 7000, 7439.5 and maybe 7629.5

Downside risks: Below 5930.5 sets an intermediate-term bear trend to target 5651, 5325/16.5 and 4733.

ftse 100 chart
Daily FTSE Chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comment on this video

Your email address will not be published. Required fields are marked *

Latest Related News

Looking for a FTSE 100 rebound (FTSE forecasts)

FTSE 100 day trade outlook: Holding onto a positive bias   Day trade update and view A firm rebound just above 6241.5 resistance to 6244 and then another setback Thursday down through 6155.5 and 6126.5 supports holding above 6097, and whilst above here we cling onto an upside rebound bias from the latter July advance to the upper end of the broader trading range, to just keep the threat to the… Continued

Markets hesitant again, sending mixed signals

Macroeconomic/ geopolitical developments Global financial markets started to signal a move to more of a “risk on” theme to start July, after the indecisive phase evident from June.However, an absence of any significant economic data through the past week has seen some markets revert to the ranges seen in June.Markets remain captured by two competing forces; increasingly positive economic data on one side and the… Continued

Topping threat for the FTSE 100 (FTSE forecast)

A fading rebound for many global stock averages over the past 24 hours, after the late June-early July strong moves higher, for a deeper corrective setback threat into today.The more negative tone has been driven by an absence of economic data, switching the focus back to threats from the global increase in new COVID-19 cases (in Melbourne, Australia, but particularly in some southern and western… Continued

Is the bear market rally top in? US COVID-19 cases weigh on stocks

Macroeconomic/ geopolitical developments Global financial markets continued the indecisive tone seen through mid-June into the end of the month, which has been in relation to competing forces; positive economic data/ strong retail demand/ support from the authorities on the one hand and the rise in COVID-19 cases on the other.The strong rally from mid-May into the first half of June, was driven to some extent… Continued

Stocks plunge for deeper correction risks – FTSE 100 Forecast

A more aggressively negative theme for risk assets over the past 24-36 hours as markets have reacted to a downbeat outlook for the US economy from the Fed on Wednesday.This, alongside increases in the numbers of deaths and cases for the COVID-19 coronavirus is some US States has seen the major global chare indices plunge lower Thursday, having already dipped lower on Tuesday/ Wednesday.This has… Continued

Forex Brokers in your location


78,6% of retail investor accounts lose money


76.4% of retail CFD accounts lose money.


79% of retail investor accounts lose.


75% of retail investor accounts lose money.