The FTSE 100 officially entered correction territory after falling more than 10% from the its recent record high by losing 124.8 points and closing at 6967.6 Italy's budget deficit, the ongoing trade war, dropping oil prices, a rising pound on the back of Barnier's optimistic comments, slowing growth in China and rising US interest rates have all weighed down on the index, spreading risk-off investor reactions. In economic news, we have no releases of economic figures that could directly impact the FTSE today.
The FTSE bounced off the 6952.6 resistance level as price divergence pattern takes effect on 4H chart with momentum indicators turning bullish on the hourly charts. A 4H candle close above 7057.6, with prices holding that level, will push prices to 7147.6.
Support: 6855.3 6657
Resistance: 7087.5 7234.1