FTSE 100 Pulls Back to Bullish Order Block

Market Analysis – June 10

The FTSE 100 index has retraced to the bullish order block on the daily chart. This pullback is also retesting the bullish trendline for the third time, offering robust support for a potential upward movement. The current price is at a discount within the prevailing bullish swing, presenting traders with an optimal trade entry opportunity.

FTSE 100 Key Levels

• Demand Levels: 8220.0, 7764.0, 7598.0
• Supply Levels: 8484.0, 9000.0, 10000.0

FTSE 100 Long-term Trend: Bullish

Since the onset of the current bullish trend, the price action of the FTSE 100 has demonstrated a consistent pattern. Each upward movement in price has been followed by a pullback to the bullish order block, allowing buyers to place long orders at lower prices, typically below the 50% range of the displacement. This is commonly referred to as Optimal Trade Entry (OTE).

During these pullbacks, the lower Bollinger Bands on the daily chart have consistently provided support for a price ascent. These pullbacks have formed strong lows that subsequently break previous highs, maintaining a clear and robust market structure.

FTSE 100 Short-term Trend: Bullish

Recently, the price has dipped into the bullish order block at 8220.0. Traders aiming to improve their risk-to-reward ratio and hedge their forex signals may consider the shift in market structure on the four-hour chart. A bullish market shift is already evident on this timeframe, with the price pulling back to a fair value gap and preparing to advance towards the previous high of 8484.0. The Stochastic indicator supports this upward move, indicating an oversold condition on the lower timeframe and suggesting an ideal timing for placing long orders.

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