Chart of the day: FTSE 100 short term technical outlook

TVC:UKX   UK 100 Index
Since Theresa May announced the snap election the FTSE 100 has taken a turn south. Is this the start of a more significant correction? Sentiment has been hanging on the chance to drive it further down for a more serious sell off, but the bulls have been hanging in there. We’ve seen a similar picture across the globe in the major indices and made trading difficult.

FTSE 100 in the short-term: price has moved under the cloud and momentum could favour a further move south although volume levels have remained consistent. The price has loved to play between the psychological levels of 7000 and 7400. A significant break below the 7000 area could spell further bearishness. Eyes should also be focused across the pond to see if any bullishness there can drag the FTSE 100 higher again. Downside resistance may be found at 7050 area, then at 6800/6700. A bullish correction could possibly see 7200 then the highs targeted once more at 7400.

Short term technical levels (based off daily chart Fibonacci levels):

Upside 3 7650
Upside 2 7400
Upside 1 7200
Current Price 7107
Downside 1 7047
Downside 2 6800
Downside 3 6550