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FTSE 100 Index look for the week ahead

After recording a bearish engulfing candlestick pattern on the daily chart on Tuesday, the FTSE 100 index continued to trade in the negative territory closing at 6579.81 on Friday, after notching a low at 6573.96. As clearly visible on the daily chart, the RSI and stochastic are trading with a bearish bias, hinting at weakness in the coming session. Overall, weekly technical picture also appears to be weak as the momentum oscillators are trading with negative tone. However, lower Bollinger band crossover on the 8H chart indicates that the index is likely to experience some recovery in the short term. Key weekly support is located at the 6551/50 level, followed by the 6530/20 and 6445/44 levels. A move back below the latter might lead to increased selling pressure on the index. Important weekly resistance is situated at the 20week SMA (currently located at the 6860/70), followed by the 6900 and 7000 levels, a clear break and stability above the latter might lead to further acceleration to the upside.

Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.