FTSE 100 Offers Range Trading Opportunities

Market Analysis – October 2

The FTSE 100 index remains in a long-term consolidation phase, fluctuating between the demand zone at 8200.0 and supply zones at 8318.0 and 8405.0 since May. This consistent movement creates various trading opportunities for scalpers and range traders.

FTSE 100 Key Levels:

Demand Levels: 8200.0, 7910.0
Supply Levels: 8318.0, 8405.0

FTSE 100 Long-Term Trend: Ranging

In recent months, the FTSE 100 index has lacked a clear directional trend, leading to consistent price fluctuations within a well-defined range. The LuxAlgo Range Detector visually maps out this range, highlighting the key resistance and support zones. A blue box on the daily chart outlines where the price has consistently been rejected, confirming the presence of a clear range.

The Stochastic indicator further supports this analysis, quickly moving between overbought and oversold levels, underscoring the FTSE 100’s consolidative behavior. As long as the price remains within this range, traders can capitalize on frequent reversals for profit.

FTSE 100 Short-Term Trend: Ranging

On the 4-hour chart, the LuxAlgo Range Detector continues to confirm the range. Recently, the price rejected the 8318.0 resistance, presenting range traders with an opportunity to target mid-range levels for quicker gains. While some traders may aim for the lower bound of the range, others prefer faster exits by targeting the midpoint.
If the price breaks above 8318.0, the next target would be the 8405.0 resistance. However, until a breakout occurs, traders can expect continued rejections at the 8318.0 level, offering more opportunities for range trading. For those utilizing forex signals, this range-bound market offers clear entry and exit points.

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