FTSE 100 Recovers Above Level 6800 but Battles Resistance at 7200

Updated:

Resistance Level: 7500, 7600, 7700
Support Level: 7300, 7200, 7100

FTSE 100 (UKX) Long-term Trend: Bearish
FTSE 100 (UKX) price is in a downtrend but battles resistance at 7200. The upward move is hampered because of the overbought condition of UKX. The index has been facing rejection whenever the market reaches above level 7000. On the upside, a price rebound above level 7000 will catapult UKX above the moving averages. Then, the upside momentum will resume. Meanwhile, on February 24 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement suggests that UKX will fall to level 2.0 Fibonacci extension or level 6700.21. From the price action, the index has reached the low of $6787 and pulled back.

FTSE 100 Recovers Above Level 6800 but Battles Resistance at 7200
UKX – Daily Chart.

Daily Chart Indicators Reading:
UKX has fallen to level 41 of the Relative Strength Index for period 14. FTSE 100 is still in a downtrend zone and below the centerline 50. The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend.

FTSE 100 (UKX) Medium-term Trend: Bearish
On the 4 hour chart, UKX is also in a downward move as price breaks above the 21-day moving average but failed to break above the 50-day line moving average. Meanwhile, on February 24 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement suggests that UKX will fall to level 2.0 Fibonacci extension or level 6708.76.

FTSE 100 Recovers Above Level 6800 but Battles Resistance at 7200
UKX – 4 Hour Chart

4-hour Chart Indicators Reading
The index is above the 70% range of the daily stochastic. It is rising and approaching the overbought region of the market. The uptrend may face rejection at the recent high.

General Outlook for FTSE 100 (UKX)
FTSE 100 (UKX) is still in a downward correction but battles resistance at 7200. The bulls have failed to keep the price above the moving averages. The index faces rejection each time it reaches the overbought region above level 7000.


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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.