FTSE 100 Breaks Major Demand Level with Three Falling Peaks

Market Analysis – November 8

The FTSE 100 index recently dropped below the significant demand level at 8145.0, following the formation of three distinct falling peaks on the 24-hour timeframe. This technical pattern has intensified bearish momentum, paving the way for potential further declines, with the next key demand level identified at 7918.0. The break of the 8145.0 level indicates a bearish shift, leaving the FTSE 100 exposed to continued downward movement.

FTSE 100 Key Levels

Demand Levels: 7918.0, 7783.50, 7500.0
Supply Levels: 8145.0, 8318.0, 8406.70

FTSE 100 Long-Term Trend: Bearish

The FTSE 100 index long-term trend has decisively turned bearish. Outside the August dip to 7918.0, the price had consistently held above the demand level of 8145.0, with buyers maintaining control over this zone since May. August’s sharp move toward 7918.0 was followed by a corrective phase, enabling the price to recover and hold above 8145.0 in the weeks that followed.

October’s price action marked the final significant test of the supply level at 8406.0. After this test, the price structure formed a series of lower swing highs, signaling a weakening in bullish momentum. The last of these swing highs occurred just before the FTSE 100 index broke below the 8145.0 demand level. The Hull Butterfly indicator now confirms strong bearish control, suggesting that this breakdown is likely to sustain continued downward pressure.

FTSE 100 Short-Term Trend: Bearish

In the short term, the bearish outlook is also clear. The Hull Butterfly indicator continues to signal selling dominance, pointing to further potential declines. If sellers maintain control, the price may soon test the next demand level at 7918.0. A breach of this level could expose the FTSE 100 to additional support levels at 7783.50 and potentially 7500.0, where fresh demand may arise. Traders monitoring forex signals will find this setup promising for observing the unfolding bearish trend.

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