FTSE 100 (UKX) Is Oversold; Buyers Are Likely to Emerge at Level 5620.30

FTSE 100 (UKX) Is Oversold; Buyers Are Likely to Emerge at Level 5620.30

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

FTSE 100 (UKX) Long-term Trend: Bearish
FTSE 100 is in a downtrend and has reached bearish exhaustion. On October 22 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This implies that (UKX) is likely to reach level 1.272 and reverse. However, the reversal will not immediate.

UKX – Daily Chart

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping downward indicating the downtrend. It indicates the current bearish trend. Presently, the share is at level 30 of the Relative Strength Index. The market is approaching the oversold region and below the centerline 50.


FTSE 100 (UKX) Medium-term Trend: Bearish
On the 4-hour chart, the share is in a downward move. On October 28 downtrend; a retraced candle body tested the 88.6% Fibonacci retracement level. This indicates that the share will fall and reach level 1.1129 Fibonacci extensions. That is the market will reach a low of 5566.30.

UKX – 4 Hour Chart

4-hour Chart Indicators Reading
The index is below the 20% range of the daily stochastic. It indicates that the market has fallen to the oversold region and buyers may emerge. The 21-day and 50-day SMAs are sloping downward.

General Outlook for FTSE 100 (UKX)
FTSE 100 (UKX) share is in a downward move. The downtrend has reached bearish exhaustion, According to the Fibonacci tool analysis, the market will reverse at level 1.272 extension or level 5620.30 and reverse.


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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.