FTSE 100 Signals Late Stage Rally At Key Supply

FTSE 100 Analysis – May 21

FTSE 100 signals a late-stage rally at the key supply level of $8,800. Technical indicators are beginning to highlight signs of exhaustion in the recent upward movement. The 9-period Simple Moving Average (SMA) has been steadily climbing near the $8,630 level, confirming short-term bullish sentiment. However, the 14-day Relative Strength Index (RSI) is hovering around 69, indicating overbought conditions and fading upside momentum.

FTSE 100 Key Levels

Resistance Levels: $8,800, $9,000, $9,200
Support Levels: $8,480, $8,110, $7,540

FTSE 100 Long-Term Trend: Bearish

On the price chart, the FTSE 100 has established a series of higher highs and higher lows over the past several weeks, signaling sustained bullish activity. This upward progression recently culminated in a retest of the $8,800 resistance level, which aligns with a previously identified supply zone where selling pressure typically intensifies. Buyers are now struggling to push prices decisively above this barrier, and trading volumes have been declining with each new attempt. These developments raise concerns about a possible false breakout, especially as momentum appears to stall at a point where it was expected to strengthen.

Looking forward, there is a realistic possibility of a bearish reversal within the broader $8,800–$8,900 range. If the index fails to break and hold above this upper limit, profit-taking and short-covering may give way to renewed selling pressure. In such a scenario, the FTSE 100 could pull back toward initial support near $8,100, where buyers may attempt to reestablish control. Should this level fail to hold, a deeper correction toward the $7,500 area becomes increasingly plausible. Traders monitoring this movement may consider integrating forex signals to anticipate turning points more effectively.

FTSE 100 Short-Term Trend: Bearish

On the four-hour chart, FTSE 100 is confronting a significant supply zone. The RSI confirms that the market is currently overbought. A notable reversal is anticipated as the price moves past the $8,740 swing low and enters the supply region.

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