FTSE 100 Launches at 7288.0 Demand Level

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Azeez Mustapha

Updated: 31 March 2023

Market Analysis – March 29

FTSE 100 has tested the 7288.0 demand level in the daily chart. A pennant chart pattern is preparing the market for a breakout.

FSTE 100 Key Levels

Demand Level: 7288.0, 7120.0, 6782.0
Supply Level: 7576.0, 7712.0, 8015.0

Ftse 100 Launches at 7288.0 Demand Level

FTSE 100 Long-Term Trend: Bearish

On the 22nd of September, last year, the sellers pierced through the 7120.0 demand zone with a large bearish candle. The break-in structure caused by the breakout drove the market to a lower demand level of 6782.0. The Stochastic and the RSI (Relative Strength Index) indicators revealed the market was oversold. A double bottom formed afterward, from which the uptrend emerged.

In December, the market experienced a significant retracement in the market’s ascent. The daily candles pressed against the resisting band of the Bollinger Bands. At the same time, the RSI and the Stochastic showed the market was overbought. The daily candles were drilled from the upper Bollinger band at 7576.0 to the lower Bollinger band at 7288.0. The 7288.0 provided sufficient support for an ascension. A breakout has driven the market from 8015.0 to the demand level of 7288.0

FTSE Short-Term Trend: Bearish

On the lower timeframe, the accumulation phase (marked blue) that preceded the bearish distribution is obvious. The market is currently rising through a parallel channel towards 7848.0 for a retracement.

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