FTSE 100 Anticipates A Bullish Trend

Market Analysis – December 18

The FTSE 100 index hit a significant low in early October 2023, setting the foundation for a strong bullish trend. Following this recovery, the index climbed to a pivotal high at 7928.10, which became a critical reference point. However, this upward momentum was soon followed by an extended consolidation phase lasting until early April 2024.

FTSE 100 Key Levels

Demand Levels: 7928.10, 7479.40, 7196.90
Supply Levels: 8475.60, 8816.50, 9250.80

FTSE 100 Long-Term Trend: Bullish

In April 2024, the FTSE 100 experienced a significant bullish breakout, surpassing key structural resistance levels and confirming the index’s long-term bullish trajectory. This breakout indicated renewed upward momentum, reinforced by a decisive bullish break of structure that provided clear directional guidance for market participants.

Despite this bullish breakout, the market soon entered another consolidation phase, encountering strong resistance near the 8475.00 level. This zone has since acted as a ceiling, limiting further upward movement. Nevertheless, the overall trend remains firmly bullish, with a sustained breach above the 8475.00 resistance likely to trigger another significant rally.

FTSE 100 Short-Term Trend: Bullish

In the short term, the FTSE 100 continues to consolidate within its broader bullish trend. During this phase, minor bullish breaks of structure have been observed, showcasing resilience and the potential for additional upside.

After a recent retracement, the market is now positioned near a critical four-hour order block, signaling the potential for a bullish reversal. This level serves as a strong foundation for renewed upward movement, with traders anticipating another wave of bullish action.
Supporting this outlook, the daily Relative Strength Index (RSI) is nearing oversold territory. This technical indicator suggests the possibility of an imminent rebound, as oversold conditions often precede bullish rallies. Market participants expect the RSI to support a significant breakout, driving prices toward higher targets and aligning with the broader bullish trend.

The FTSE 100 index’s price action reflects a market in transition, characterized by a dominant bullish trend interspersed with consolidation periods. In the long term, a decisive breach above the 8475.00 resistance level would confirm the continuation of the bullish rally, with crypto signals suggesting favorable market conditions for sustained upward momentum.

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