FTSE 100 Inverted Cup-And-Handle Hints at Bearish Break
Like Germany's DAX that we highlighted earlier today, the UK's FTSE 100 is also on the verge of a bearish break down after a strong start to 2024.
The UK index has formed a clear inverted cup-and-handle pattern over the last 10 weeks. Akin to the "head" and "right shoulder" of a head-and-shoulders pattern, this setup shows fading buying pressure and a potential reversal of an established bullish trend if the neckline, in this case at 8110, gives way. In that scenario, the UK index could erase much of the Q2 gain and retreat toward the 200-day MA around 7800.
The UK index has formed a clear inverted cup-and-handle pattern over the last 10 weeks. Akin to the "head" and "right shoulder" of a head-and-shoulders pattern, this setup shows fading buying pressure and a potential reversal of an established bullish trend if the neckline, in this case at 8110, gives way. In that scenario, the UK index could erase much of the Q2 gain and retreat toward the 200-day MA around 7800.
Penafian
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