The FTSE 100 or what some people call as the “footsie” comprises of the 100 most highly capitalised UK companies listed on the London Stock Exchange. Some of the most notable companies listed here are BP (currently known as the worst oil spill in history), Royal Dutch Shell (the “Shell” gas station you see all over) and Unilever (one of the biggest producers of consumer brand products).
Chart-wise, the footsie looked to have broken down from the head and shoulders formation last July 5 (kindly check here). However, a few days later it rebounded and went back above the neckline (kindly check here). Apparently, what looks like a head shoulders could actually be a falling wedge set up as seen in the chart now. This could be confirmed once the resistance of the falling wedge gets cleared out. If it does, the value of the index could ascend to the next marker at 5,331.50. In case the value of the FTSE 100 starts falling again, the current support is the uptrend. If the index further falls below the uptrend, the next support could be 4,790.00.