FTSE 100 (UKX) Is in a Downward Move but May Reverse at Level 6361.10

FTSE 100 (UKX) Is in a Downward Move but May Reverse at Level 6361.10

Resistance Level: 7500, 7600, 7700
Support Level: 7300, 7200, 7100

FTSE 100 (UKX) Long-term Trend: Bearish
FTSE 100 has fallen to level 6407.50 after breaking below the moving averages. In such a breakdown, the downtrend is likely to continue on the downside. At other times, the market will pullback and resume upward. In a similar price action on December 21, the market fell to the low and move up.

UKX – Daily Chart

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping upward indicating the previous trend. Presently, the share is at level 43 of the Relative Strength Index. It indicates that the UKX is in the downtrend zone and it is capable of falling

FTSE 100 (UKX) Medium-term Trend: Bearish
On the 4-hour chart, the share is in a downward move. On the January 28 downtrend, a retraced candle body tested the 78.6 % Fibonacci retracement level. The retracement indicates that the share will fall to level 1.618 Fibonacci extension. That is the low of 6361.10.

UKX – 4 Hour Chart

4-hour Chart Indicators Reading
The share is above the 20%range of the daily stochastic. It indicates that the share is in a bullish momentum. The 21-day and 50-day SMAs are sloping upward indicating the uptrend.

General Outlook for FTSE 100 (UKX)
FTSE 100 (UKX) share is still in a downward move. According to Fibonacci tool analysis, the share will fall to level 1.271 Fibonacci extensions or the low of 6361.10. At this level, the share is likely to reverse and move upward.


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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.