Global stocks average selloffs signal topping patterns (FTSE 100 Forecast)

Intermediate
  • The “risk off” theme was reinforced on Thursday as global stock averages plunged through key support levels, confirming short- and intermediate-term topping patterns.
  • Despite intraday rebounds, the damage has been inflicted, which likely leaves risks lower for today and into the second half of May.
  • Here we focus on the futures contract on the UK benchmark average, with our FTSE 100 forecast.  

FTSE 100 day trade outlook: Threat still lower

A Thursday plunge back lower to just hold above the key swing low from early May, rebounding from 5651, but to leave the negative tone from this selloff and Wednesday’s breakdown (through 5876/68 and 5833 supports), and despite an intraday bounce to keep the risk lower into Friday.

  • We see a downside bias for 5750, then 5720; a break below aims for 5651/45 and then 5614/12.
  • But above 5794/5800 targets 5833, maybe even towards 5890 and 5934/37.

FTSE 100 intermediate-term outlook

A late February plunge below 7164 set an intermediate-term bear trend.

  • Downside risks: We see an intermediate-term bear trend to aim for 4701.5 and 4500, maybe 4060.5.
  • What changes this? Above 6398 shifts the intermediate-term outlook to neutral and through 6871.5 to bullish.

Daily FTSE 100 Future Chart

ftse 100 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Your email address will not be published.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

Stocks erratic, searching for direction; Pound plunges

Macroeconomic/ geopolitical developments A solid start to last week for risk assets as European and Asian stocks staged rebounds with US markets closed for the Labour Day HolidayHowever, riskier assets turned south again Tuesday and traded heavy for much of last week (see the “Global financial market developments” section below for details.At the start of the week, UK Prime Minister Boris Johnson placed a 15th… Continued

Looking for a FTSE 100 rebound – FTSE forecasts

European equity indices posted solid rebounds on Monday on the US Labour Day holiday with US markets closed. The FTSE 100 produced a particularly strong advance, assisted by Pound (GBP) weakened against both the US Dollar and Euro (GBPUSD lower and EURGBP higher).The Pound Sterling weakness was driven by concerns regarding the EUR-UK trade talks, with Prime Minister Boris Johnson mow applying a 15th October… Continued

S&P 500 poised for a more bullish signal

Macroeconomic/ geopolitical developments The “risk on” theme continues in August, albeit rather unenthusiastic.This “risk on” leg has been reinforced this week with wider, global financial markets indicating a more positive economic outlook, as we review in the ‘global financial market developments’ section below. The macroeconomic was broadly positive again, though US Retails Sales slightly disappointed on Friday.There have been some pockets of improvements for COVID-19… Continued

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

Forex Brokers in your location


SIGN UP

78,6% of retail investor accounts lose money


SIGN UP

74,9% of retail investor accounts lose.


SIGN UP

75% of retail investor accounts lose money.


SIGN UP

76.4% of retail CFD accounts lose money.