Let's start with the scenario because this is the one that is in play right now... Feel free to hit like to show your support.
Looking at the chart above, we can notice a huge (bold brown dashed line) and we have two rising .
The first resulted in very strong drop after the FTSE 100 broke below EMA10, this is marked with a red arrow.
The second is in play now and the FTSE 100 already broke and closed below on EMA10 (green), EMA50 (magenta) and EMA100 (blue) lines.
Taking this into consideration and the indicators, and , the FTSE 100 Index has high probabilities to continue falling, this is represented with another red arrow. The dashed green and red lines at the bottom represent the last low and strong support.
Conditions for change: Now we take a look at the scenario. If the FTSE 100 (UKX) can break above EMA10, it has the chance to continue going up. Any trading below this indicator and the potential remains.
We believe based on the chart as it is now, that the FTSE 100 can continue falling.
Thanks a lot for reading.
This is Alan Masters.