Nathan BatchelorThe FTSE 100 is starting to recover higher alongside global equity markets on hopes that the coronavirus may have peaked across Europe.
UK 100 analysis on multiple time frames is pointing to a potential upcoming technical test of the 6,700 resistance level.
FTSE 100 medium-term price trend
The FTSE 100 is starting to push higher again this week, with the index recovering by over 1,000 points from the March low, which is located around the 4,700 level.
FTSE 100 technical analysis shows that bulls could be getting ready to launch an attack towards major trendline resistance, around the 6,700 level.
Looking at the weekly time frame it shows that the trendline is located by attaching the March 2009 low to the February 2016 low.
The daily price close below the trendline on March 6th provoked heavy technical selling, with the FTSE 100 falling by 2,000 points.
With this in mind, it seems entirely likely that bulls may attempt to test back towards this major trendline at some point.
Coronavirus affects markets
FTSE 100 short-term price trend
FTSE technical analysis over the short term is showing that bears are in control while price is trading above the 5,995 level.
The four-hour time frame is currently showing that a large ascending triangle pattern has formed, with bulls probing the neckline of the pattern.
Ascending triangle patterns are typically considered to be bullish patterns. The size of the pattern is around 1,000 points.
With this in mind, a breakout above the triangle could prompt a test towards the 6,700 level, which aligns with medium-term analysis.
FTSE 100 technical summary
UK 100 analysis shows that both short and medium-term analysis are pointing to a potential rally towards the 6,700 technical area.
