The FTSE 100 index is currently moving sideways on the daily chart, signaling a lack of clear direction as the price fluctuates between key levels. Recently, the price fell from a significant supply zone within this range, leading to a downward movement.
In May, the FTSE 100 index experienced an impulsive rally, reaching 8500.0. Since then, a six-month correction has developed, forming a wide range between the supply zone at 8406.0 and the demand zone at 7918.0. Recently, the price was rejected at the 8406.0 level on the daily chart, leading to consecutive bearish candles.
The ADX (Average Directional Index) reads 10, indicating an extremely weak trend. Additionally, the Bollinger Bands reveal reversals at extreme levels, signaling overbought and oversold conditions. The recent touch of the upper Bollinger Band at 8406.0 suggests the market was overbought at that point.
FTSE 100 Short-Term Trend: Ranging
On lower timeframes, a bearish shift in market structure has emerged. The price has broken below a minor resistance zone at 8318.0, setting the stage for a potential further decline toward support areas. Despite the overall randomness of the range, the market has consistently reacted at key price levels, reflecting indecision. Traders can rely on forex signals to gain better insights into potential market movements as the FTSE 100 index continues to trade within its range.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
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