Technical analysis of FTSE for October 29, 2015 Market Analysis Review

Technical outlook and chart setups:

The FTSE is seen to be reversing lower from the Fibonacci 0.618 resistance level around 6,400/6,500 as depicted on the daily chart view. Please note that an intermediary trend-line resistance line is also followed and a bearish engulfing candlestick pattern is forming. This is enough evidence to confirm that the next big move is towards downside, at least 4,000 levels. It is hence recommended to initiate 50% short positions now with risk around the 6,500 levels. Immediate support is seen at 6268, followed by 6,050 and lower, while resistance is seen at 6,500 (interim), followed by 6,750 and higher.

Trading recommendations:

Remain short now, stop is at 6,500 levels, target is open.

Good luck!

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