FTSE 100 is likely to extend its underperformance – Credit Suisse

The FTSE 100 medium-term technical picture has clearly deteriorated and the previously highlighted ‘double top measured objective’ seen at 6281 has now been clearly exceeded, analysts at Credit Suisse apprise.

Key quotes 

“FTSE 100 has sold off sharply after breaking out from its former consolidation range and below key support at 7004/6992, the October 2019 low, 61.8% Fibonacci retracement of the whole December 2018/July 2019 uptrend and key trendline support from February 2016.” 

“We stay bearish, looking for a test of the 2016 low at 5500. The ‘measured objective’ to the new completed ‘descending triangle’ top completed below 6537 suggests a move to 5158, then the 2010/2011 lows at 4790/91, approximately 13% below current levels.”