Annual Trading Forecast on FTSE 100 (2016)

PUBLISHED: Jan 19 2016 @ 17:12 | Comments (0) | More info about Azeez Mustapha

FTSE 100 stock (FTSE:UKX) is in a strong downtrend and the propensity might continue. Based on the recent price action, upswings in the market are followed by stronger downswings, meaning that the upswings might be used as opportunities to sell short. There are times in which the market moves in ranges when trading activity is high, which reveals that there are many bears that are happy to frustrate determined bullish attempts.

In the chart, 4 EMAs are used for this analysis, and they are EMAs 10, 20, 50, and 200. The color that stands for each EMA is shown at the top left part of the chart. Right now, all the EMAs are sloping downwards (a bear market), while the price is below the EMA 10. Any forays into the EMA 20 or 50 would bring good opportunities to sell short further, especially when a bearish candle forms following that.

FTSE 100 is expected to continue its downward journey.

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