London’s FTSE100 set to edge further lower on Monday, following on a bad losing streak last week and as Brexit talks over the weekend between Brexit Secretary Dominic Raab and EU negotiator Michel Barnier failed to produce a breakthrough ahead of Wednesday's summit in Brussels. The FTSE 100 index closed down 0.2%, or 11.02 points, at 6,995.91 on Friday, ending the week a steep 4.4% lower. In economic news, we have no releases of economic figures that could directly impact the FTSE today.
From a technical perspective, on the short-term the market looks awful. After slicing through the 7180 support and weekly trendline like it didn't exist, we are now trading around the 7000 psychological level. However the FTSE100 failed to print lower lows during Friday's selloff signaling a reversal attempt. Although I do think at the moment we are entering a stronger long-term bear phase and if we close below the 6950 support line the index could drop sharply lower testing yearly lows of 6866 and the 50% longer term fib level.
Support: 6950 6866
Resistance: 7072 7186