FTSE 100, H4

The four-hour chart shows the construction of a graphical model Descending Triangle, from where the price is expected to leave downwards, as well as reversal models of candlestick analysis Evening Star, Bearish Engulfing and Shooting Star at levels 8363.6–8261.2 near the upper border of the Descending Triangle pattern. Their combination signals increasing pressure from sellers and suggests that the price will soon overcome the lower boundary of the Descending Triangle pattern at the level of 8106.3, in case of successful consolidation below which the downward dynamics in the asset will intensify to the area of 8008.9–7864.0. An alternative scenario is likely if the "bulls" consolidate above the resistance level 8261.2. This will become a catalyst for opening long positions with targets of 8363.6–8478.5.

FTSE 100, D1

On the daily chart one can also note the formation of a Descending Triangle graphic pattern, which is formed as part of a large upward trend. In addition, there is the formation of Bearish Engulfing and Bearish Harami candlestick patterns at the levels 8363.6–8261.2, which signal increasing activity of sellers. Most likely, the "bears" will attempt to overcome the lower boundary of the Descending Triangle pattern at the level of 8106.3, which will be a signal to open short positions with targets of 8008.9–7864.0.

Support and resistance

Support levels: 8106.3, 8008.9, 7864.0.

Resistance levels: 8261.2, 8363.6, 8478.5.

Trading tips

Short positions can be opened below the level of 8106.3 with targets at 8008.9, 7864.0. Stop-loss — 8168.7. Implementation time: 9-12 days.

Long positions can be opened above 8261.2 with targets at 8363.6, 8478.5. Stop-loss — 8196.2.