Technical forecast for FTSE 100

ftse2

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.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More