The FTSE 100 fell below the 5,000 level last week for the first time since 2011, leaving the index on course for its worst monthly performance on record.
UK 100 analysis shows that continued weakness below the 5,131 level could see the index falling towards the 4,376 level.
FTSE 100 medium-term price trend
The FTSE 100 lost over 10 per cent of its value last week, leaving the index down by over 25 per cent this month.
The fundamental picture for the UK economy looks bleak, with the coronavirus outbreak putting the domestic economy on lockdown.
The technical outlook for the FTSE 100 is still uncertain, with the index showing few signs that a recovery will take hold any time soon.
FTSE 100 technical analysis shows that continued weakness below the 5,131 level could see the index testing the final line of Fibonacci support.
Drawing a Fibonacci retracement to the 2018 high to the 2008 low, the 78.6 Fibonacci retracement level is the final level of support, at 4,376.
Traders should note that a breakout below the 4,376 level could see the index falling towards the 2008 low, around the 3,400 level.
FTSE 100 short-term price trend
FTSE technical analysis over the short term is showing that bears are in control while the price is trading below the 5,445 level.
The lower time frames show that a bullish reversal pattern will form if bulls can maintain price above the 4,800 level.
A rally through the 5,400 level would activate the bullish reversal pattern and could possibly send the UK100 back towards the 6,000 level.
Bullish MACD price divergence is also present on the one-hour time frame, and extends towards the 6,800 resistance level.
Sustained weakness below the 4,800 level may see the pattern invalidated, and the index falling towards the 4,200 area.
FTSE 100 technical summary
FTSE technical analysis suggests that the index could fall towards the 4,376 level this week. A short-term recovery may take hold if bulls can hold the price above the 5,400 level.