FTSE 100 Approaches Key Resistance Amidst Major Pullback

FTSE 100 Analysis – April 16

FTSE 100 is nearing a key resistance level amidst a significant pullback. On the daily timeframe, early signs of bearish momentum are emerging, as reflected in the indicators. The 9-day Simple Moving Average (SMA) has begun to flatten around $7,980, following the recent strong upward retracement. At the same time, the MACD (Moving Average Convergence Divergence) remains below the signal line, accompanied by a negative histogram reading of -3.72. Both MACD lines are currently trending downward, indicating bearish divergence despite the temporary recovery. This suggests that the bullish momentum is weakening and a continuation of the downward trend is likely once the price tests key resistance.

FTSE 100 Key Levels

Resistance Levels: $8,480, $8,800, $9,000
Support Levels: $8,110, $7,790, $7,540

FTSE 100 Long-Term Trend: Bullish

The index previously experienced a sharp decline following a Break of Structure (BOS) around $8,480, which was succeeded by a rally that now appears to be approaching a bearish order block between approximately $8,480 and $8,610. This zone overlaps with previous support, where a Change of Character (CHoCH) also took place. The current price, around $8,220, is moving into this order block with a corrective structure, indicating potential resistance within this highlighted area. Past consolidation between $8,370 and $8,480 further reinforces this supply zone.
The outlook suggests that once the price reaches the $8,480–$8,610 bearish block, it may face rejection, potentially triggering a reversal. A double-top pattern could emerge around this level, pushing the index lower. If bearish momentum resumes, the next major support zones are around $8,110 and $7,790. Should selling pressure intensify, the price could revisit the $7,550 level. Until a confirmed break above $8,800 occurs, the current rally is likely a retracement within a broader bearish structure.

FTSE 100 Short-Term Trend: Bullish

FTSE 100 is displaying bullish momentum on the 4-hour chart, following a strong bounce from the $7,550 region. The MACD histogram is climbing, and both MACD lines have crossed above the signal line, confirming short-term bullish strength.
The price is currently trading above the 0.5 Fibonacci retracement level at $8,140 and is heading toward the bearish block between $8,480 and $8,610. As long as the price remains above $8,110, a continued move into the $8,480 supply zone is possible. For traders utilizing forex signals, this confluence of technical indicators may provide valuable insights for anticipating a reaction at key resistance

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