The FTSE 100 remains pressured in the short-term, as the increasingly bearish fundamentals surrounding the UK economy weigh on the index.
UK 100 analysis shows that a large head-and-shoulders pattern with a significant downside projection is unfolding across the weekly time frame.
FTSE 100 medium-term price trend
The FTSE 100 is under pressure in the near term, after the index suffered a heavy technical rejection from just below the 6,200 level.
FTSE 100 technical analysis shows that a complex head-and-shoulders pattern with more than 3,000 downside potential is unfolding on the weekly time frame.
The March 2020 decline towards the 4,750 level, and subsequent bounce, indicates that a larger head-and-shoulders pattern is taking shape.
Traders should be mindful that a decline below the March 2020 low could cause the FTSE100 to decline towards the 2,000 level.
FTSE 100 short-term price trend
FTSE technical analysis over the short term is showing that bulls are in control while price is trading above the 5,700 level.
The four-hour time frame is showing that a head-and-shoulders pattern has formed, following the recent rejection from the 6,190 area.
Looking more closely at the bearish reversal pattern, the neckline of the pattern is found around the 5,600 level.
The size of the head-and-shoulders pattern indicates that the FTSE 100 could fall towards the 5,000 level over the short term.
With this in mind, watch out for a potential test of the 2020 and multi-year trading low for the FTSE100, around the 4,750 level.
FTSE 100 technical summary
UK 100 analysis shows that the index could decline towards the 5,000 level if the 5,700 level is broken. The weekly time frame shows that a large bearish pattern is unfolding.