The FTSE 100 has solidified its bearish trajectory after breaking below the minor support level at 8200.0 and the critical support level at 8145.0. Following this significant plunge, the price has retraced to the broken zone, signaling a retest of the former support level, now acting as resistance.
The bearish momentum intensified after the 8200.0 demand zone was breached, which was further confirmed by the appearance of a three black crows pattern. This pattern decisively pushed the price below the major demand level at 8145.0.
The Hull Butterfly Oscillator indicates increasing selling pressure, while the Moving Averages (Periods 9 and 21) have consistently maintained dominance over the daily candles since the breakdown.
Currently, the price has retraced to the broken demand zone at 8145.0, which now functions as a resistance level. This zone contains a critical bearish order block that is expected to attract sellers, potentially fueling additional short positions in the market.
FTSE Short-Term Trend: Bullish
On the lower timeframes, the pullback appears as a temporary bullish correction. However, this movement is likely to align with the overarching bearish trend after the price tests the bearish order block at 8145.0. A continuation of the bearish order flow is anticipated following this retest.
The market’s structure currently supports a prolonged bearish trend, with the 8145.0 bearish order block serving as a decisive pivot for future price action. Traders relying on forex signals should closely monitor this zone for a potential Change of Character, presenting opportunities for re-entry into the prevailing trend.
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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