📈 FTSE 100 Index Double-Top: Corrective Crash To ~6,000➖ Back in May 2018 the UKX produced a peak that led to a major crash a few years later, this was the All-Time High at the time.
➖ The ATH came in May 2018 followed by a long-term lower high January 2020.
➖ The lower high January 2020 signaled the start of the biggest corrective crash since 2008.
We have a similar situation when it comes to price action and chart patterns, as well as many signals to look at pointing toward a major, strong, hard correction.
➖ The UKX All-Time High came in February 2023.
This is marked on the chart with a rounded top pattern.
➖ Just last week, April 2024, the UKX produced a long-term lower high (more than a year long). This lower high can also be read as a double-top and this wouldn't change what the chart is saying; down!
➖ All the action since mid-2021 can be considered a consolidation phase.
➖ When the market crashes, we can say the entire period was a distribution phase.
➖ This week, active session, the UKX went full red and deleted three weeks of growth.
The bearish momentum is really strong and right now the UKX is hanging on support as EMA10.
➖ The RSI peaked in 2006, giving us an 18 years long bearish divergence; actually, it goes further back. The RSI hit an ATH in September 1989, giving us a 35 years long bearish divergence.
👉 The first, main and easy target sits around 7,150.
👉 The second target sits around 6,000.
Thank you for reading.
Namaste.
