FTSE 100 Remains Range-Bound Amid Lack of Clear Direction

Market Analysis – October 29

The FTSE 100 market remains in consolidation, with price contained below the supply zone at 8406.0. Since completing its impulsive phase in May, the index has failed to establish a new trend, signaling indecision and a prolonged range-bound environment.

FTSE Key Levels

Demand Levels: 8145.0, 7918.0, 7783.0
Supply Levels: 8318.0, 8406.0, 9000.0

FTSE Long-Term Trend: Ranging

On the daily chart, the Average Directional Index (ADX) is currently below 10, indicating a significant lack of momentum and direction within the FTSE 100 market. The index has remained trapped in this range for over five months, reflecting a period of prolonged indecision among market participants. This extended consolidation phase highlights the market’s hesitancy to establish a new trend, with buyers and sellers showing an apparent unwillingness to push the index beyond key boundaries.

The Stochastic indicator further confirms this range-bound behavior. At the last test of the 8406.0 resistance level, the indicator signaled an overbought condition, suggesting that further upside may face strong resistance. This pattern aligns with the market’s tendency to move sideways, with price action unable to build enough momentum to break out decisively from the current consolidation zone.

FTSE Short-Term Trend: Ranging

In the four-hour timeframe, the market shows a consistent bounce off a bullish trendline that marks the range’s equal lows. Currently, the lower timeframe reveals a short-term downward trend, yet these trends are prone to sudden reversals due to the choppy conditions in the higher timeframe. A decisive breakout from this range may serve as an indicator for the market’s next directional move, and traders who use forex signals should monitor potential volatility at the upper and lower boundaries of the current range.

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