The FTSE 100 recently staged a rebound from the 5,000 level, with the recovery extending towards above the 5,800 level.
UK 100 analysis shows that continued weakness below the 5,788 level could see the index falling towards the 3,700 level.
FTSE 100 medium-term price trend
The FTSE 100 staged an impressive recovery towards the end of last month, with the index rallying by more than 800 points.
The FTSE 100 has now started to turn lower alongside global equity markets as the worrying rise in global coronavirus infections causes investors to sell stocks again.
FTSE 100 technical analysis shows that continued weakness below the 5,788 level could see the index falling towards the 3,700 level over the medium term.
Last month's breakout under the 6,520 level ignited a bearish head-and-shoulders pattern that has already reached its full downside target.
A larger head-and-shoulders pattern has recently been activated, and suggests the FTSE100 could be heading towards the 3,700 level.
Key support prior to the bearish target is found at the 4,900 and 4,376 levels.
FTSE 100 short-term price trend
UK 100 analysis over the short term is showing that bears are in control while the price is trading below the 6,360 level.
The lower time frames show that a bearish head-and-shoulders pattern has formed with a near 400 point downside projection. The neckline of the pattern is located around the 5,350 level.
Alternatively, a rally through to the 6,220 level would create a large inverted head-and-shoulders pattern.
Bullish MACD price divergence is also still present on the one-hour time frame, and extends towards the 6,800 resistance level.
FTSE 100 technical summary
UK100 analysis suggests that the index could fall towards the 3,700 level if weakness persists below the 5,788 level.