FTSE 100 Retraces Towards Bullish Order Block

Market Analysis – May 28

The FTSE 100 index is experiencing a retracement from the recent resistance level of 8500.0, directing attention toward a bullish order block at the 8120.0 demand level. This zone is gaining prominence as a significant Point of Interest (POI) for the best forex signals telegram communities seeking confirmatory cues for bullish momentum.

FTSE 100 Key Levels:

Demand Levels: 8120.0, 7800.0, 7600.0
Supply Levels: 8500.0, 9000.0, 10000.0

FTSE 100 Long-Term Trend: Bearish

The descent of the FTSE100 index towards 7800.0 previously marked a notable shift in the market structure. The following breakout and pullback to this zone suggested a potential accumulation of buy-side interest. The subsequent market activity has been quite explicit, with each progressive low being succeeded by significant highs, eventually reaching the 8500.0 resistance level.

Technical indicators present bearish signals, with negative histogram bars appearing on the MACD (Moving Average Convergence Divergence), indicating a potential decline in price. Furthermore, the index’s slip below the 9-period Moving Average suggests that this line is a temporary resistance rather than support. This retracement could be interpreted as a consolidation phase before a bullish continuation.

FTSE 100 Short-Term Trend: Bearish

On the 4-hour chart, the FTSE 100 showcases a clear bearish pattern, contrasting with the daily chart’s depiction of the movement as a corrective phase in an otherwise bullish context. The decline has effectively filled the Fair Value Gap just above the 8220.0 region on the lower time frame. Should bullish sentiment prevail, an upswing resuming the uptrend is anticipated, potentially retesting the recent high at 8500.0. This observation aligns with the market’s cyclical nature of alternating between pullbacks and continuations within a prevailing trend.

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