FTSE 100 Buyers Push Forward in a Consolidation Market

Market Analysis- March 12th

FTSE 100 buyers push forward in a consolidation market. In recent days, the FTSE100 has been experiencing a consolidation phase, with buyers silently pushing forward. Before the consolidation phase, the bulls were building up strength, aiming to break above the 7768.100 key level. However, their efforts were thwarted, and the market retraced back to the 7609.000 level. This pattern is not uncommon, as the market tends to test key levels multiple times before a definitive breakout or reversal occurs.

FTSE 100 Key Zones

Resistance Zones: 7970.000, 7768.000
Support Zones: 7609.000, 7396.000

FTSE100 Long-Term Trend: Bullish

In January, a similar scenario unfolded, with buyers managing to break above the 7609.000 level before entering a consolidation phase. This indicates that the FTSE 100 market is currently in a state of indecision, with buyers and sellers vying for control.

The Bollinger Band indicator shows the market volatility and potential breakouts. Currently, the indicator shows a bit of market compression, suggesting that the price range is narrowing. This compression can be seen as a precursor to increased volatility. This may lead to a breakout from the consolidation phase.

If the index price opens up with more volatility, the buyers may pull out of consolidation. This may potentially lead to a definitive breakout above the 7768.000 key level. Traders should closely monitor the Bollinger Bands and be prepared to adjust their strategies accordingly.

FTSE 100 Short-Term Trend: Bullish

In the short time frame, buyers are still clinging to more setup, indicating their willingness to push the market higher. However, it is essential to consider the price oscillator, which is currently below the 0.00 level. This suggests that market momentum is on the decline, indicating a potential shift in sentiment.

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