FTSE100 could not manage to surpass its resistance zone at 4520 area and has started drifting down. So far the uptrend is not threatened until its holding above 4110 -watch out! But the picture on short to long term charts is not very encouraging. Even yesterday it formed a big bearish engulfing candle, which is negative. On the monthly chart below, there is another large red candle formed in the month of June, similar to the bearish engulfing.
Momentum indicators are also intending to enter the negative zone. 50dma has been left behind at 4335 levels and currently this index is halting at 4235 -its 200dma. So, the overall scenario is negtive in the short to medium term.
As mentioned above, the level of 4110, if breached would pull the markets down towards 3600 once again.
To sum it up all, the green shoots, if any would have to be searched among the quarterly results next month. But for the time being, the signs of immediate recovery are fading off. It could take little more time.
