Published 02nd December 2018

The downside trend most likely remains intact. There is no terminal pattern on the charts yet. This is not only valid for the FTSE 100. It is valid throughout most major European equity indices. The downside trend is maturing, which is signaled by momentum divergence. Nevertheless, there is no cross-market divergence yet. December 2018 price action recorded a confirmed decline throughout Europe. All in all, technical evidence signals a mature but not terminal downside trend.

The British index could unfold a diagonal pattern at this stage. It is still unconfirmed but blueprinted by the black scenario. Further strength divergence supports this case. The pattern unfolds into a tradable setup where a S/L can be placed at equidistant waves 5 & 3 (that invalidates the pattern).

The technical pattern in the FTSE potentially diverges to continental Europe. Investor sentiment has been very negative on British equities. The Brexit process could trigger a deja-vu. All in all, the next swing to the upside (whenever it sets in) seems to have a bigger potential for the FTSE than for most of continental Europe.

The analysis above is a historical abstract of our FTSE 100 Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.