FTSE 100 Is in an Upward Correction but Is Stuck Below Level 7400

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

FTSE 100 (UKX) Long-term Trend: Bearish
FTSE 100 is in a sideways move but is stuck below level 7400 . Buyers are attempting to push the index above the moving average lines. On the upside, if price breaks above the moving average lines, the market will rise and retest the resistance at level 7578. Today, buyers have pushed the index above the 50-day line SMA as it approaches the 21-day line SMA.

Daily Chart Indicators Reading:
FTSE 100 is at level 49 of the Relative Strength Index for 14. It indicates that there is a balance between supply and demand. The index price is between the moving average lines indicating a possible range-bound move. The 21-day line SMA and 50-day line SMA are sloping horizontally indicating the sideways trend.


FTSE 100 (UKX) Medium-term Trend: Bearish
On the 4-hour chart, UKX is in a downtrend but makes an upward correction. The index price has broken the moving average lines but is stuck below the 50-day line SMA. The current upward move is facing rejection at the resistance of 7400. The index is likely to decline to level 7200.

4-hour Chart Indicators Reading
The index is above the 80% range of the daily stochastic. It indicates that the market has reached the overbought region of the market. Sellers will be attracted to the overbought region to push prices down. The 21-day line and 50-day line SMAs are sloping downward indicating the downtrend.

General Outlook for FTSE 100 (UKX)
FTSE 100 (UKX) is in a downtrend but is stuck below level 7400. The index has broken above the 50-day line SMA which indicates that UKX will be in a range-bound movement between the moving average lines.


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