The British FTSE 100 index found support last week around the £7,245 twice, since then the index has been on an impressive rally from the mentioned support, towards the £7,450. The latter level was an important resistance which caused a topping fashion and began a move lower.

The index formed a perfect topping fashion (an inverse parabola) and began to move lower breaking below the £7,400. The movement on the index seems to be unrelated to the British Pound because the pair is simply trading sideways for the past couple of days not moving on the Bank of England monetary policy announcement.

The index is looking at some important short-term support and there seems to be some around the £7,350. With nothing on the Economic Calendar, the index will be very much affected by the working of the European Indices and any headline from Brexit as it near the second stage of negotiations.

Looking at the indicators, the RSI is printing below the 40-level and seems it is moving even lower towards the 20-level. The MACD is also showing more downward movement because it is dropped below the zero-axis and there could be some positive momentum brewing on the index because of the RSI and MACD are reaching oversold-ness.

FTSE100 with RSI and MACD showing topping pattern
FTSE100 with RSI and MACD showing topping pattern

Currently, the best performers on the FTSE 100 are SSE (+1.45% at 13.28£); Segro (+1.32% at 5.75£); and Glencore (+1.26% at 3.62£). The worst performers are Next (-1.38% at 42.85£); Mediclinic International (-1.37% at 6.13£); Kingfisher (-1.32% at 3.29£).