FTSE 100: More Selling Pressure Could Continue
AvaTrade | Aug 28, 2013 03:44AM ET
The FTSE 100 index has broken its upward wedge on a 60 minute time frame. This confirms that the upward trend is losing its steam and the bias could still be to the downside. Moreover, the price is also trading in a downward channel (shown by yellow lines) and there is more pressure to the downside within this channel. The reason for this is reflected by the price by touching the lower line of this channel three times and touching the upper line of this channel only two times.
The volatility for the index remains low as the price is trading within the Bollinger band and close to its 20 day moving average. The RSI is trading in line with the price action which means that the bias could still be to the downside.
Important Zones
Resistance Zone
6668-6656 Minor
6782-6756 Major
Support Zone
6334-6309 Minor
6163-6130 Major
DISCLOSURE & DISCLAIMER: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam
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