FTSE 100 Bulls Regain Momentum After a Bearish Encounter

Market Analysis – September 22

FTSE 100 bulls regain momentum after a bearish encounter. The stock market witnessed a notable shift in sentiment as bears attempted to assert dominance. Before the bearish onslaught, the bulls had maintained their strength. This was particularly evident around the 7231.00 market zone. This period of buy stability persisted despite the looming sell backdrop.

FTSE Market Zones

Resistance Zones: 7817.00, 7678.60
Support Zones: 7386.90, 7231.00

FTSE 100 Long-Term Trend: Bullish

The sell traders launched a formidable attack above the crucial 7698.60 market level. This offensive materialized as buyers struggled to make significant progress beyond this key zone. The appearance of a hammer candlestick marked the turning point in this battle. This is a technical pattern often associated with trend reversals.

 
The inverted hammer candlestick pattern is a reversal signal that occurs at the end of a downtrend. This indicates potential upward movement. In this case, its presence signaled a shift in sentiment from bullish to bearish, as sellers gained momentum.

While sellers initially appeared to have the upper hand, their momentum was curtailed as they failed to breach the 7646.60 level. Buy activity swiftly resumed, and recent gains have managed to engulf the previous sell pressure. It signals a potential resurgence of the bullish market.

With the renewed strength of the bulls, there is growing anticipation of a further bullish swing. The bulls may now attempt to target levels beyond the 7817.00 market level. The Money Flow Index remains inclined above the 50.00 level, suggesting that buyer strength is building forward.

FTSE 100 Short-Term Trend: Bullish

On the 4-hour chart, buyers continue to accumulate gains. They are still fueling optimism that they may successfully breach the 7817.00 market level.

 

You can purchase Lucky Block here.  Buy LBLOCK

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.