Current trend

Quotes of the leading index of the London Stock Exchange FTSE 100 continue to decline steadily for the third month in a row.

Currently, the price is trying to consolidate below the level of 7500.0 (Murray level [0/8]) in order to continue moving to the levels of 7343.8 (Murray level [-2/8]) and 7280.0 (Fibo retracement 61.8%). The key for the "bulls" is the level of 7578.1 (Fibo retracement 38.2%, Murray level [1/8]) above the middle line of the Bollinger Bands, its breakout will give the prospect of changing the current downward trend and resuming growth to the area of 7656.2 (Murray level [2/8]), 7734.4 (Murray level [3/8], Fibo retracement 23.6%), 7812.5 (Murray level [4/8]).

Technical indicators confirm the continuation of the downtrend: the Bollinger Bands and the Stochastic are reversing downwards, the MACD histogram is stable in the negative zone. 

Support and resistance

Resistance levels: 7578.1, 7656.2, 7734.4, 7812.5.

Support levels: 7500.00, 7343.8, 7280.0.

Trading tips

Short positions can be opened from 7450.0 with targets at 7343.8, 7280.0 and stop-loss in the area of 7540.0. Implementation period: 5-7 days.

Long positions can be opened above 7578.1 with targets at 7656.2, 7734.4, 7812.5 and stop-loss in the area of 7520.0.