FTSE back near swing lows


The FTSE 100 index, also known as the Footsie, has been vastly underperforming other indices and is the weakest equity index year-to-date (out of the major indices).

The Bank of England has not been so aggressive in money printing as the other central banks, which has left UK stocks vulnerable.

On Friday, it was down another 1%, trading near previous swing lows, and it looks like this time we will see a bearish breakdown to new cycle lows. 

The critical support area remains at previous lows near 5,760 - 5,790 GBP. If the index drops below this support, larger stop-losses of long positions could be hit, which would most likely send the price further down.

If that happens, the Footsie would be trading at fresh five-month lows. Moreover, the whole daily chart looks like a large decline in March, correction with consolidation, and now the second leg lower might occur. The next target for bears could be near 5,630 GBP.

Alternatively, if the Footsie starts rallying, there are a couple of resistances - 5,960 GBP, 6,030 GBP, and 6,080 GBP.
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