FTSE 100 Shows Early Bearish Signs With Potential Downside Risk

FTSE 100 Analysis – April 2

FTSE 100 is exhibiting early bearish signals, pointing to a possible downside risk. The index is currently trading below the 9-day SMA (Simple Moving Average) at approximately $8,620, highlighting a decline in bullish momentum. The RSI (Relative Strength Index) is around 35, indicating that the index is approaching oversold levels but still has room to fall further. The downward slope of the moving average reinforces the bearish sentiment as the index continues to struggle with reclaiming key resistance levels.

FTSE 100 Key Levels

Resistance Levels: $8600, $8800, $9000
Support Levels: $8480, $8370, $8110

FTSE100 Long-Term Trend: Bearish

The current price action confirms a bearish market structure. A clear break of structure (BOS) occurred around $8,480, followed by a bearish order block (OB) formed near $8,620. The market had previously rejected the $8,800 resistance level, resulting in a lower high before breaking below support. This shift in market structure indicates increasing control by sellers, and the formation of a new lower low further supports the ongoing downtrend.
If the index fails to reclaim the $8,600 zone, a retracement toward this level could present short-selling opportunities before another potential leg downward. The next significant support lies around $8,370, with additional downside possible toward $8,110 if bearish momentum persists. On the other hand, if bulls manage to reclaim $8,600 and sustain above it, a potential reversal could challenge the $8,800 resistance once again. Traders may consider forex signals to help navigate these volatile conditions.

FTSE100 Short-Term Trend: Bearish

FTSE 100 remains in a bearish trend, with the price currently trading below diagonal resistance. The descending trendline continues to exert selling pressure, contributing to the formation of lower highs.
If the $8,480 level is broken, the price could decline toward the $8,370 support. Although the RSI is nearing oversold territory, there are no strong indications of a bullish reversal at this time.

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