FTSE 100 (UKX) Shrinks after a Retest at the Overhead Resistance

FTSE 100 (UKX) Shrinks after a Retest at the Overhead Resistance

Resistance Level: 7,500, 7, 600, 7,700
Support Level: 7,200, 7,100, 7,000

FTSE 100 (UKX) Long-term Trend: Bearish
Today, the FTSE 100 stock continues its downward fall after the resistance at 7700. The stock has earlier being resisted on January 20. The recent fall is a continuation of the resistance on January 20. Remember, the bulls have been making concerted efforts to break the overhead resistance without success.

Since July 2019, the bulls have made four unsuccessful attempts at the overhead resistance. On each occasion the bulls will retest the overhead resistance, thereby forming a bearish double top pattern. This is a reversal pattern that makes the current uptrend to reverse. Meanwhile, the current fall may reach a low of 7100.

UKX - Daily Chart

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are trending horizontally indicating the range-bound movement. The Relative Strength Index period 14 has dropped to level 39 indicating that it is below the center line 50. This indicates that the coin is likely to fall.

FTSE 100 (UKX) Medium-term Trend: Bullish
On the 4-hour chart, the stock made an upward move to retest the overhead resistance. After two unsuccessful attempts at the resistance, the stock fell. The stock is likely to fall to the range-bound zone.

UKX - 4- Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index period 14 level 31 indicates that the price is approaching the oversold region of the market. The stock is currently at a low of 7,400, if the price drops to the low of 7,100, the coin will be in an oversold region.

General Outlook for FTSE 100 (UKX)
The stock has continued to fall because of the formation of a bearish double top. On the downside, if the bears break below the resistance line, the coin will further drop to the low of either $7,100 or $7,200.

FTSE 100 (UKX)Trade Signal
Instrument: FTSE 100 (UKX)
Order: No buy or sell signal.
N/B The RSI is yet to fall below level 30 at the time of writing.



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Author : Azeez Mustapha


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