FTSE 100 Bounces Above Level 6800 as Sellers Attempt To Short

Technical Indicator
Resistance Level: 7500, 7600, 7700
Support Level: 7300, 7200, 7100

FTSE 100 (UKX) Long-term Trend: Bearish
FTSE 100 has resumed selling pressure as sellers attempt to short. The index has reached the current support above level 6800. The downtrend will resume if price breaks below the current support. On September 28 price slump, UKX made an upward correction and a candle body tested the 78.6% Fibonacci retracement level. The correction indicates that UKX will decline to level 1.272 Fibonacci extension or level 6640.38.

Daily Chart Indicators Reading:
The index is declining as it reaches level 35 of the Relative Strength Index for period 14. The selling pressure may continue as the price bars are below the moving average lines. Presently, the moving average lines are sloping downward indicating the downtrend


FTSE 100 (UKX) Medium-term Trend: Bearish
On the 4-hour chart, UKX is in a downward correction as price breaks above 21- the day Line SMA. The bullish momentum failed to break the 50-day line SMA as the index faces another rejection. UKX is now trading above level 6800 . The downtrend will resume when the current support is breached.

4-hour Chart Indicators Reading
FTSE is still trading in the oversold region as it is below the 20% range of the daily Stochastic. The implication is that the selling pressure has reached bearish exhaustion.UKX is likely to resume upward


General Outlook for FTSE 100 (UKX)
Since September 29, UKX declined above level 6800 support as sellers attempt to short. The market will resume upward if the current support holds. Today, sellers are retesting the current support to break below it.


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