Since the beginning of the year, the UK main index lost almost 7.5% also last week managed to dive more than 3.5% and is in a distribution phase since early February 2018.
Last week the main UK index dropped with a wide range but found enough buying pressure near a weekly support to trim some of its losses and closed in the middle of the weekly range, in addition the index managed to close below the previous week low, which suggests a bearish momentum.
The stochastic is showing a strong bearish momentum and crossed below the 50 mid line.
The long waited correction turned from a correction to a trend reversal as the FTSE 100 erased all 2017 gains, so might expect another test at 2017 low before any solid attempt to the upside.
Expecting a downward move to 2017 low at 7,025.0 on a bounce from a Fibonacci retracement at 7,110.8 (scenario 1) and should resume the bullish trend toward another Fibonacci retracement at 7,230.1 after a bounce from 2017 low at 7,025.0 (scenario 2).