The index has fallen hard in recent days due to inflationary worries.

Technicals

The FTSE 100 has fallen over 7% over the 5 trading days. While the general outlook does remain negative, at this moment in time the RSI is approaching 30 (oversold) on the daily timeframe. Every time the index has reached this level in the last 2 years, the index has bounced back. The market is possibly suggesting an extreme low based on price action. To add to this, trendline support also sits at 7,000, which would act as great technical support. Risks do weigh though as interest rates increase will put pressure on shares, but with the pound falling in value this will help ease gains. Towards the upside, the initial resistance above is 7,192 followed by 7,304. Toward the downside, support sits at 7,000. A break here on the daily timeframe would mean a sustained move much lower. Though technicals could suggest a strong bounce shortly.