Technical forecast for FTSE 100

FTSE Sep13 tested first resistance at 6595/05 & topped exactly here. We fell back to fill the gap at 6492/87 & bottom just below at 6477. Yesterday’s price action may have signalled the end of the 3 week recovery & be aware of the long term bearish head & shoulders forming. The outlook is turning negative. Today we could test at 6455/50 & a low for the day possible. Longs need stops below 6420 as we could then target 6365/55 for a buying opportunity at this stage.

If we can hold above 6490 look for a move back to 6520/23. We should struggle to make any further gains today as the out look turns more negative, but above here we may reach 6565 possibly as far as a retest of 6595/05 for a selling opportunity.