FTSE 100 price (FTSE:UKX) has suffered a sudden plunge, but that is not serious enough to bring about a bearish bias on the market, unless the plunge becomes protracted.
Price has already violently broken below the EMA 21, and once it closes below it, enabling another candle to open below the EMA, that would be a “sell” signal from the EMA. Williams’ % Range period 20 is running into the oversold region and may remain there for a long time. That also shows weakness in the market.
The only scenario that can render the bearish expectation for this year invalid, is when price rises above the EMA 21, and the Williams’ % Range reverses and begins to move upwards… Otherwise the outlook for the market is bearish for the year 2021.
UKX is expected to trend lower and lower (though there would be short-lived bullish attempts on the way), and the demand territories at 6400.00, 6200.00 and 6100.00 could easily be broken to the downside, before the year ends.
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