FTSE 100 Drops Sharply as It Faces Rejection at Level 7500

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

FTSE 100 (UKX) Long-term Trend: Bearish
FTSE 100 (UKX) price has plunged below the moving averages as it faces rejection at level 7500. The index has been fluctuating between the 21-day SMA and the 50-day SMA for the past four days. Today, the bears have broken below the 50-day SMA as UKX falls to the bearish trend zone. The downward move was accelerated as price fell to the bearish trend zone. The current downtrend is likely to subside as the market reaches the oversold region.

Daily Chart Indicators Reading:
UKX is at level 33 of the Relative Strength Index for period 14. The market has reached the oversold region. The current downtrend may ease as it reaches the low of level 7257. The 21-day SMA and the 50-day SMA are sloping southward indicating the downtrend.

FTSE 100 (UKX) Medium-term Trend: Bearish
On the 4 hour chart, UKX is in a downward move as price was repelled at level 7500. UKX fell to the previous low at level 7283. Meanwhile, on February 14 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement suggests that UKX will fall to level 2.0 Fibonacci extension or level 7295.21.

4-hour Chart Indicators Reading
The index is below the 40% range of the daily stochastic. The market has resumed bearish momentum. It is approaching the oversold region of the market.

General Outlook for FTSE 100 (UKX)
FTSE 100 (UKX) has resumed a downward move as it faces rejection at level 7500. The index has fallen to the previous low of level 7295. UKX will resume upward if the current support holds. If the bears break below the current support, the market will decline to level 7170.

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