FTSE 100 Ascends in a Bullish Channel

Market Analysis – February 1st

The FTSE 100 ascends in a bullish channel on the daily chart. The market is currently in a correction phase after striking the supply level at 7887.0.

FTSE 100 Key Levels

Resistance Levels: 7600.0, 7887.0, 8100.0
Demand Levels: 7311.0, 7079.0, 6820.0

FTSE 100 market initiated a decline in price from the overbought region above 7311.0 in August. The Moving Average (period nine) fell below the Moving Averages (period twenty-one) to signify a selloff. The price plummeted until the selloff was halted at the 6820.0 support level.

A double-bottom bullish reversal pattern appeared at the demand level to signal a change of trend. The bulls were ready for a takeoff as the Stochastic revealed the market was oversold. The uptrend was finally confirmed with the cross of the Moving Averages at the demand level. The buyers rallied aggressively at the retest of the Moving Averages. The Moving Averages rested below the candles afterward to support the bullish motion. The previous resistance level at 7311.0 has turned into support. The buyers utilized the key level to ascend to 7887.

FTSE 100 Short-term Trend: Bearish

The market is currently retracing after reaching the supply level of 7887.0. A bullish Order Block has been tested. A triple-bottom bullish reversal pattern is visible on the four-hour chart The market is expected to break through the resistance at 7887.0 with the aid of the supporting trendline.

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