Bottom line: FTSE long term bearish structure remain intact until prices stay below the 7724 mark. The counter trend rally that had begun since 4750 levels, might have completed around 5928 and bears might be preparing to take control back.
Fundamental Outlook:
Global equity markets including FTSE, would be taking cues from COVID-19 drugs being tested and most countries planning to open up. It could lead to a positive effect on equity markets this week as most governments plan to end lock down in a phased manner starting first week of May 2020.
Italy, which was the worst hit by the COVID-19 pandemic, finally prepares to end shutdown in a phased manner starting May 04, 2020. The COVID-19 curve continues to flatten globally with lower cases and deaths reported.
Oil prices continue to slide lower as we write this article. Brent Crude trades close to 20.00 mark while WTI Crude is trading lower around $15 per barrel as global demand continues to plunge amidst the COVID-19 pandemic.
Technical Analysis:
FTSE might have carved a meaningful lower high around 5928 on April 14, 2020. The indice has drifted in a close trading range since then, and could be preparing to resume lower again.
FTSE counter trend rally has reached fibonacci 0.50 retracement of the previous drop between 6888 and 4750 respectively. It is quite possible for a test of 6078 levels, which is fibonacci 0.618 retracement before reversing lower again.
Structurally, FTSE could be heading below 4750 levels to complete the drop from 7724 levels. Immediate resistance is seen at 6888, the March 04 high, while intermediary support is seen towards 5516 respectively. A drop below 5500 would confirm that bears are back in control.
Most traders might be willing to initiate short positions close to 5900 levels, with protective stops above 6900 at least and projected targets below 4750 respectively.
Prepared by
Harsh Japee, Technical Analyst.
FTSE Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
