 Hello and welcome to the CMC markets chart of the week video with myself market analyst David Madden and today's date is Wednesday the 27th of September and the time is 12 15 p.m And the chart that we're going to look at today is the footsie 100 Taking a quick look at the kind of broader shape of the chart and the board of moods is seen on the chart over the last 10 months From November last year. It's been broadly speaking a very decent push higher on the footsie 100 a rallied from late 2016 All the way through 2017 for the first half of the year culminating with a reaching a record high all-time high in June of this year but since June we have been pushing lower and We're currently trading at 7384 and we're in a price area which is quite significant It's significant because seven thousand three hundred area was a significant support during the summer And we're also nearing the tuner day moving average at seven thousand three hundred and thirty Notice how in the summertime as the market was drifting lower We did manage to find some find support in around the seven thousand three hundred level. We found it as a support a seven thousand three hundred an active support in in in June July and August and We're going to finally smash through that level Decisively in September of this year. It also took out the tuner day moving average now As you can see from mid September until now We have seen the price push higher and if you look at the momentum indicator You can also notice that negative momentum is declining So when the price is pushing high when the price and the momentum are pushing in the same direction You can then become more confident that the move is going to continue It's only when we have a large divergence between the two that could be a sign that the price movement could potentially be coming to an end So we're currently trading at seven thousand three hundred and eight So we're just north of the seven thousand three hundred level We're eyeing up the tuner day moving average which comes into play at seven thousand three hundred and thirty Should we clear that level seven thousand three hundred and thirty that would that would be a bullish indicator Seeing as the turn tuner day moving average is deemed to be quite an important metric In the financial markets the markets north of us to if it's turn a moving average That's seen as by bullish and if it's south of it that seemed to be bearish So if you do push higher through the eternity moving average We can then potentially target the fifth of a moving average at seven thousand three hundred and eighty four and then the 100 a moving average at seven thousand four hundred and eighteen North of those North of the of those metrics the next level to potentially watch out for will be the September high at seven thousand four hundred and sixty one And if you take that level out buyers will then be looking towards the August high of seven thousand five hundred and fifty two and then north of that We've been looking towards the all-time high at just shy of seven thousand six hundred As I mentioned about momentum indicator a moment to go if the if the price does Go north of the third day moving average and it continues to create multi-week and multi-month highs What you would like to see on the momentum indicator is a swing Which is currently in negative territory into positive territory and then increase as the price is going up If the indicator and the price are moving in the same direction, you'd be more confident that that can move the last Now now that we've discussed what would happen price action wise if them if the move if the market Clear as the journey moving average Let's take a look at the downside and see what might happen if the market can't crack the journey moving average So there's been a number of attempts to kind of run up towards the journey moving average But hasn't quite got there yet and at the market can't crack the seven thousand three hundred and thirty level We could see some of the buying momentum And if that is the case and the footsie does begin to turn over on itself We could then look to retest this price here of seven thousand two hundred and thirty three South of that bears with envy looking towards the September low of seven thousand one hundred and ninety five And if that has taken out at the next big level to potentially watch out for the downside It would be the April low at seven thousand and eighty eight Like I was saying about momentum if the market does start to move south again But you would want to see to be more confident in in the Continuation of the move is an increase in negative momentum as I mentioned if the price and the momentum are moving in the same direction You can be more confident that move will continue And if you are trading the footsie one hundred keep an eye on Friday as the UK does have GDP numbers out Which could add volatility to the market. Thank you very much. Join in next week