Key support level at 7,686.38 looms for downtrending the FTSE; currently 54.95 points away

• Price action honing in on likely support at 7,686.38
• Price action fails to breach Fibonacci support at 7,727.72 and bounces 13.61 points upon testing

Over the last 5 days, the FTSE has fallen 2%. Yesterday's session continued down the same path: bearish sentiment ensured the FTSE finished yesterday's session lower. However, despite the downward bias, the FTSE etched out a distinct 7,727 to 7,779 session range.

The index has been trending positively for about a month. The FTSE hit a significant low of 6,826.2 around 6 months ago, but has since recovered 13.74%.

Trend analysis indicates that the MACD index is indicating that momentum is shifting from bullish to bearish following a negative crossover. When the MACD falls below the signal line, it is typically considered to be a bearish development favoring short positions. Fibonacci-minded traders witnessed a key Fib level of 7,727.72 holding firm – an indicator of highly concentrated demand around this level. Asset volatility analysis shows that Bollinger Bands® shows an indication of recovery: the lower band is at 7,643, a low enough level to, generally, suggest that the FTSE is trading below its fair value. Chart analysis suggests the FTSE could begin to recover as it approaches significant support, now 54.95 points away from 7,686.38. Dipping below could be an indication that further losses are ahead.

With market volatility ebbing, the current technical outlook indicates the FTSE will remain range-bound for the immediate future.

Fundamental indicators – United Kingdom RICS House Price Balance (Apr) released yesterday at 23:01 UTC with a figure of -39, while the previous figure was -43.

In the meantime, negative performances are also seen in other markets, CAC is down to 7,361.2, losing 35.97 points, after ending the previous session around 7,397.17.

Other assets are showing positive performances as Nasdaq went up by 1.04% yesterday, and closed at 12,300. Notably, S&P 500 rose 0.45% yesterday and closed at 4,119.17.

Upcoming fundamentals: tomorrow at 06:00 UTC data for United Kingdom GDP will be released, with an expected decline to 0.2% from the preceding figure of 0.6%.