FTSE 100 Medium Term Short: Divergence, BB, Missed Pivots

FX:UK100   FTSE 100 Index
The FTSE 100 is trading near 6950, up more than 1200 points from the post-Brexit low of 5727.

Fundamentally, this is because of the sharp fall in Sterling.

However, technically, the FTSE 100 may be due for a correction.

It has relentlessly traded upwards, however:

1) There is strong resistance to be expected at 7000, a psychological round number.

2) There is divergence on the 4H chart at 6950.

3) The FTSE 100 has traded outside its 800-period BB on the 4H chart for more than 2 weeks.

4) There are multiple missed pivots , monthly and weekly, amidst the FTSE's post-Brexit rally.

This might suggest that we are due for a correction in the medium term, perhaps to the 6700 level.

If Sterling recovers, the correction may extend to 6300. However this is unlikely given a dovish BoE, quantitative easing and the market pricing in further interest rate cuts.
Comment: The correction to 6700 has almost happened. The next interim target is 6500, but GBP weakness is a risk for FTSE upside in the near term.
Stocks simply cannot be short until asset purchasing is stopped. Especially with how pro-easing the BoE is, this rally is to the f#c!ng moon
TanayUK TheNocturnalCapitalist
Haha I agree mate, fundamentally FTSE is a buy.

Just that technically, in the short/medium term, there might be a correction given the ridiculous pace of the rally upwards.
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