FTSE 100 Stock Index trading near top end of the price channelSqueezed
UK retail sales fell hard in September, higher cost of living hitting the pockets of consumers
UK recent economic data highlights
The drop in UK retail sales indicates that consumer spending slowed in September; actual -1.4% vs -0.3% forecast
Highlights little signs UK household spending to pick up soon as higher prices push consumers to become more careful about spending
FTSE 100 Stock Index trading near top end of the downward price channel
UK100 Index: current price remains vulnerable towards the downside, although price has traded slightly stronger since touching the 52-week low at 6,713 last week momentum indicators seem to suggest further price weakness ahead for the index
Scenario
(a) Price fails to consolidate above it’s 10-day very short term moving average around (6,900) which exposes a re-test of last weeks low near 6,713, and if the 52-week low fails to hold a further extension lower towards 6,400 (2.618% lower extension from the August highs - September lows)
(b) Price breaks out of the downward price channel (chart 1) and makes a move toward the upper 7,180 resistance
