FTSE close below Fibonacci support points to further losses
Yesterday saw the FTSE close below 6723, which represented previous support at the 38.2% Fibonacci retracement. As such, today was always very likely to see some losses in the early part of trading.
While the Fibonacci support was an important one, the really crucial level to watch is 6672 as this represents the swing low from 1 April. Alongside that, there is the 10 March low of 6691 to watch out for.
I do expect further losses, but given the extremely oversold conditions (stochastic and MACD at six-month lows), a bounce higher is likely to come in the near future. For now, I am looking for a move to 6672 and will see the reaction to that level.