FTSE 100 Nears Rejection at $8,600 Supply Zone

FTSE 100 Analysis – April 23

FTSE 100 is approaching a likely rejection at the $8,600 supply zone. The Relative Strength Index (RSI) currently stands at 54, reflecting neutral momentum slightly above the midpoint of 50. While this does not signify overbought conditions, it indicates that the recent bullish momentum is weakening. Moreover, the 9-day Simple Moving Average (SMA) is starting to level off around $8,140, signaling early signs of potential weakness. This development follows a sharp recovery; however, momentum indicators have not yet confirmed a sustained uptrend, hinting at a possible reversal near resistance.

FTSE 100 Key Levels

Resistance Levels: $8,600, $8,800, $9,000
Support Levels: $8,110, $7,790, $7,540

FTSE 100 Long-Term Trend: Bearish

Price action has recently moved into a critical supply zone between $8,610 and $8,700, which previously served as a significant distribution area before a sharp decline. The recent bullish candles have filled the gap created by the earlier breakdown but now show signs of exhaustion. The previous major rejection from this area coincided with a Change of Character (ChoCH), suggesting the potential resumption of the bearish trend. With price hovering around $8,460, just below resistance, the absence of a strong breakout above the order block reinforces the bearish outlook.
Looking ahead, FTSE 100 may face rejection from the $8,610–$8,700 supply zone, continuing its downward trend. If the index fails to break above this resistance, it could decline back toward the $8,110 support. A breach of this level may drive price further down toward the $7,790 region. A more pronounced bearish movement might see price revisiting the $7,550 area, aligning with a previous swing low. This ongoing price activity highlights a likely continuation of the broader bearish trend, especially as sellers regain control amid weakening bullish momentum and limited influence from forex signals.

FTSE 100 Short-Term Trend: Bearish

FTSE 100 has entered the overbought territory on the 4-hour chart, with the RSI currently reading 67, nearing the overbought threshold of 70. Price is approaching a descending trendline resistance near $8,610, suggesting a possible rejection.
The 9-period SMA at $8,300 maintains an upward slope, reflecting short-term bullish strength. Nevertheless, if selling pressure intensifies at this resistance zone, a pullback toward the $8,110 support appears likely.

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