The FTSE 100 index continues to face difficulties as it fails to breach the crucial resistance zone at 8371.70 after six attempts by buyers. This level has kept the market in a prolonged consolidation, limiting any upward progress.
During April and May, the FTSE 100 index experienced volatile price movements, with an impulsive rally giving way to the current extended consolidation. Despite several efforts to break key levels, price action remains confined within a narrow range, reflecting a lack of clear directional strength.
Repeated tests of both the upper and lower bands of the Bollinger indicator suggest that the market is becoming increasingly resistant to further price movement. The FTSE 100 market’s stiff condition reflects its reluctance to break free from this range, trapping the price between these crucial levels. Similar to the Bollinger Bands, the Stochastic indicator points to an overbought condition near 8371.0 and an oversold condition near 8166.88, showing that both buyers and sellers are exhausting themselves at these levels. The current market state is unfavorable for swing traders, but scalpers may find opportunities by targeting the range extremes and aiming for the center with tight risk management.
FTSE 100 Short-term Outlook
On lower timeframes, order blocks are easily broken as price retests fail to hold, behaving like thin ice. A breakout from this range, followed by a retest with strong momentum, could provide the market with a clearer direction for its next significant move. Traders relying on forex signals may need to stay cautious as the market waits for a decisive shift.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
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