FTSE 100 ends four-day winning streak

FTSE at the base level

The FTSE 100 fell by around 0.4% on Wednesday, after hitting a new record high on Tuesday, and posting gains for four consecutive sessions, affected by a decline in the shares of major commodity companies as a result of lower oil and precious metal prices.

Shares in oil giants Shell and BP fell more than 2% after US President Donald Trump said Venezuela would send up to 50 million barrels of oil to the United States.

At the same time, sectors less affected by economic cycles outperformed the market.

Shares in telecommunications giant Vodafone rose by around 2.4%, while shares in utilities companies Severn Trent, United Utilities, and SSE also rose as investors sought safer assets in a risk-averse session.  

FTSE on a technical level

The FTSE is currently trading within an upward price channel on the daily time frame, with the index approaching the upper limit of the upward price channel.

It is attempting to complete the Crab harmonic pattern and reach a new historic high.

We are currently targeting 9930 as the initial target, followed by the lower limit of the channel at 9750.

Any rise in an attempt to complete the harmonic pattern near the 10230 level is expected to be an opportunity to sell again.

This scenario will fail if 10300 is breached to the upside.