FTSE 100 (UKX) Is in an Upward Move, May Reverse at Level 6072

FTSE 100 (UKX) Is in an Upward Move, May Reverse at Level 6072

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

FTSE 100 (UKX) Long-term Trend: Bullish
FTSE 100 is in an upward move since November 2. The share is rising but will reach the high of level 6000 before resuming a downward move. The overall trend has been on a downward move since June. The price has been making a series of lower highs and lower lows.

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 55 of the Relative Strength Index. The market is in an uptrend and above the centerline 50.

FTSE 100 (UKX) Medium-term Trend: Bullish
On the 4-hour chart, the share is in an upward move. However, the market is reaching the overbought region. On November 5 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This explains that the share is likely to reach level 1.272 Fibonacci extension and reverse. That is at level 6072, the market is expected to reverse but the reversal will not be immediate.

UKX – 2 Hour Chart

4-hour Chart Indicators Reading
The share is above the 80% range of the daily stochastic. It indicates that the market is in the overbought region. The overbought region has been ongoing since November 2. The 21-day and 50-day SMAs are sloping upward.

General Outlook for FTSE 100 (UKX)
FTSE 100 (UKX) share is presently rising. However, the share is likely to reach bullish exhaustion at level 6000. According to the Fibonacci tool analysis, the market will reverse at level 1.272 extension or level 6072.


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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.