FTSE 100 Enters New Bullish Phase After Breaching 8700.0 Supply Level

Market Analysis – July 18

The FTSE 100 has entered a new phase of bullish momentum following a decisive break above the 8700.0 supply level. Before this bullish move, the index had been locked in a prolonged consolidation period from September 2024 to January 2025. This extended sideways trend eventually gave way to a bullish breakout, marking the onset of an upward trajectory.

FTSE 100 Key Levels

Demand Levels: 8380.0, 7930.0, 7550.0
Supply Levels: 8700.0, 9020.0, 9320.0

FTSE 100 Long-Term Trend: Bullish

The initial bullish phase extended until early April 2025, when the market faced a sharp bearish retracement that pulled the price down to the 7550.0 level. Despite the intensity of this decline, the broader bullish structure remained unbroken. The price swiftly rebounded, beginning a steady recovery that ultimately led to a breakout above the 8700.0 resistance level — the same level that had triggered the April pullback.

This breakout indicates a bullish structural shift and sets the stage for a potential continuation toward higher price levels. As long as the price holds above the 8700.0 threshold, the long-term bullish outlook remains intact, with a new upward wave likely to develop.

FTSE 100 Short-Term Trend: Bearish

On the 4-hour chart, a temporary bearish pullback appears to be in progress. The index is currently retracing into a daily bullish order block after forming a failed high, pointing to potential short-term weakness. The Relative Strength Index (RSI) on the 4-hour timeframe also indicates declining momentum, supporting the case for a pullback.

This retracement is expected to serve as a healthy correction within the broader bullish context. It may reactivate the order block before the bullish trend resumes. Traders might consider using forex signals to monitor key reversal points and entry opportunities during this phase.

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