• FTSE 100 reversed from resistance area
• Likely to fall to support level 6643.
FTSE 100 index recently reversed down – after the price reached the resistance area lying between the key resistance level 6875.00 (top of wave 4 from March of 2020 which was also set as the likely upward target in our earlier forecast for this index) and the upper daily Bollinger Band. The downward reversal from this resistance area stopped the previous sharp upward impulse wave (C).
Given the strength of the aforementioned resistance area and the latest strengthening of the risk-off sentiment on the closures of a number of cities in China due to the surging coronavirus cases there – FTSE 100 is expected to fall toward the next support level 6643.0 (former strong resistance level from December).