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Your email address will not be published.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 surge – FTSE 100 Forecast

The “risk on” phase has further extended from late May into early June, with global share indices again surging to new cycle highs Tuesday and already into Wednesday.The positive global view continues to be driven by the successful easing of lockdowns, the reopening of the European and US economies, and as of yet no signs of a significant second wave of the coronavirus pandemic.This is… Continued

Stock indices bounce with Oil, but stay vulnerable (FTSE 100 focus)

A small rebound for the major share averages over the past 24 hours, as the oil market has stabilised, and the oil futures price has rebounded.However, this has not necessarily switched the theme from “risk off” to “risk on”, with global stock indices still suffering from losses inflicted earlier this week.Here we spotlight the future on the UK benchmark equity index, the FTSE 100. FTSE… Continued

Fear of Missing Out (FOMO) stock rally?

Macroeconomic/ geopolitical developments The COVID-19 virus continues to spread globally, with the epicentre now in the US, where the number of cases and deaths continues to increase.However, there has been modestly encouraging data from Europe, with some nations such as Italy, Spain and Germany seeing a potential plateauing of the number of cases/ deaths from the coronavirus.Furthermore, four European nations (the Czech Republic, Austria, Denmark… Continued

Stock averages still aiming higher (FTSE 100 forecast)

Global stock averages pushed higher again on Tuesday, to reinforce strong gains from Monday, pushing to still higher new recovery peaks. (see our report here too from yesterday on the S&P 500). This has echoed hopes from a decline and plateauing of new cases/ deaths from COVID-19 in Europe and rumours of the removal of some lockdowns in various, major economic nations going forward.Here we… Continued

Stock indices stay vulnerable to further losses (FTSE forecast)

Global financial markets have shifted back to more of a “risk off” phase since the start of Q2 into April, with stock averages lower (see our recent reports on the DAX and S&P500Share indices did manage modest rebounds Thursday, after a more promising outlook was seen for the Oil price, with the Oil and energy sector heavy FTSE 100 index, particularly benefiting.Here we focus on… Continued

Forex Brokers in your location