FTSE 100 Hovers above Previous Support at Level 6800

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

FTSE 100 (UKX) Long-term Trend: Bearish
FTSE 100 is in a downtrend as it hovers above the previous support at level 6800 . The downtrend has been accelerated after the rejection at level 7500. The index price breaks below the moving average and resumes selling pressure. On September 1 price slump, the price corrected upward and the candle body tested the 38.2% Fibonacci retracement level. The correction indicates that UKX will decline to level 2.618 Fibonacci extension or level 6445.51.

Daily Chart Indicators Reading:
UKX has fallen to level 29 of the Relative Strength Index for period 14. The implication is that the market has reached the oversold region. The current downtrend has reached bearish exhaustion. The moving average line is sloping horizontally indicating a sideways trend .The index price is below the moving average lines which indicate a further decline.

FTSE 100 (UKX) Medium-term Trend: Bearish
On the 4-hour chart, UKX is in a downtrend . On September 13, the index retested the resistance at 7500 as a confirmation of the downtrend. On September 28, the market declined above level 6800. For the past five days, FTSE 100 is fluctuating above the level 6800 support. The downtrend will subside if the current support holds. However, if sellers breach the current support, the market will decline to level 6400 price level.

4-hour Chart Indicators Reading
UKX has fallen below the 20% range of the daily stochastic. It has reached the oversold region of the market. Buyers are likely to be attracted at lower levels of price. The moving average lines are sloping southward indicating the downtrend.

General Outlook for FTSE 100 (UKX)
UKX has reached bearish exhaustion as it hovers above previous support at level 6800. According to Fibonacci analysis, the market will further decline to the low of level 6445.51


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