FTSE100: UK out of the EU _24/06/2016

Trading recommendations

Sell ​​in the market below the level of 6090.0. Stop-Loss 6140.0. Take-Profit  5995.0, 5900.0, 5820.0, 5770.0, 5725.0.


Technical analysis

Immediately, they became known first results conducted a referendum, the British FTSE100 stock index fell. The decline was followed by more than 11% to the level of 5770.0. With the opening of the trading session on the London Stock Exchange today, the index fell another 1.4%, while the minimum was recorded near the mark 5725.0.

After the day before the price rose above the level of 6415.0, corresponding to a full 100% recovery to a precipitous decrease in the index of December 2015, the results of the referendum brought down the price below $ 5770.0 (23.6% Fibonacci level of the correction to the last wave of the decline from the beginning of December 2015) .

But then, in the course of the European session, the price of FTSE100 index also actively recovered above the level of 5995.0 (Fibonacci level of 50%) to the level of 6090.0 (61.8% Fibonacci level). The current volatility is thus already reached 720 points, between the maximum and minimum 6444.0 5724.0.

Reducing the pound and the FTSE100 index will be, most likely, an extended character.

It is possible again decline to lows near the mark of 5572.0 years and even lower. Much will depend on the actions of the Bank of England and the UK measures undertaken by the government. Most likely, the Bank of England in the near future will reduce the interest rate from the current level of 0.50% to zero, which should support the British stock market.

On the weekly, monthly charts indicators OsMA and Stochastic are in negative territory on the daily chart indicators also turned to short positions.

On the daily chart has formed a new downstream channel with a lower limit near the level of 5870.0 and the top - near the level of 6270.0. Growth also limit the strong resistance levels 6160.0 (EMA50, EMA144), 6220.0 (EMA200 on the daily chart).

Talking about return above these levels, at least, premature.

In any case, the pressure on the index of the London Stock Exchange FTSE100 will continue in the short term.

Support levels: 5995.0, 5900.0, 5820.0, 5770.0, 5725.0

Resistance Levels: 6090.0, 6160.0, 6200.0, 6220.0, 6270.0


Overview and Dynamics

After obtaining the results of the referendum in the UK the world's stock markets crashed. Quotes of gold jumped by more than $ 100 per ounce, sharply stronger yen, the US dollar, especially in pairs with the euro and the pound. More than $ 3 per barrel of oil fell quotes.

As already known, according to the official results, 51.9% of the vote for an exit, against 48.1% against the British voted for the secession of the country from the European Union. The final result of the referendum on membership in the EU UK: the total number of votes for the output of 17,410,742, for the preservation of membership 16 141 241. Out of the 43-year period of political and economic integration of the UK with the rest of Europe. Now begins a two-year period, during which it will be possible to harmonize the conditions of release. The separation process at the same time face a huge number of the complexities of the political, technical and economic nature.

How to find economists and political scientists, the output of the third EU economy from the community violates well-established balance of power in the European Union, as well as set a precedent for the consideration of its membership in the EU other member countries of the bloc.

Japanese Nikkei Stock Average on the basis of trading in Asia fell 7.9% to 14,952.02 points, registering the strongest loss in points from April 2000 and a percentage from March 2011.

Chinese Shenzhen Composite Index on the basis of trading in Asia declined by 0,8%, ChiNext - on 0,5%, Shanghai Composite - 1.3%. China on Friday upheld the yuan by the central bank currency intervention after the pair dollar / Chinese yuan on Friday reached a level of 6.6140, which was the highest level since mid-January 2011.

 The Bank of England may lower interest rates from the current record low of 0.50% to zero. It will also encourage the ECB to ease monetary policy even more than expected, including the reduction of deposit rates by 10 basis points and extending the asset purchase program until 2018 or later.

GBP / USD pair dropped today to around 1.3230, collapsed with a mark of 1.5000 reached earlier.

FTSE 100 fell by 11% with the opening of today's trading day up 1.4% after the opening of trading on the London Stock Exchange.

Despite the fact that the FTSE100 index makes some attempts to stabilize at the lows reached, the pressure on the British stock market and stock index will continue for a long time, and the decrease in the index is likely to continue.