Market Analysis – January 3rd
FTSE100 faces potential resistance as buyers tread cautiously.
The buy strength in the market could be hanging in the balance as buyers encounter shallow resistance at the 7764.30 significant level.
This resistance has the potential to trigger a significant market shift as we enter the new year. The pace of the bulls has slowed down in recent days. Right now, they are currently holding back from penetrating through the 7764.30 price zone.
FTSE100 Key Levels
Resistance Levels: 7930.30, 7764.30
Support Levels: 7381.40, 7229.00
Looking back at the previous year, there was a noticeable display of bullish aggressiveness for several months. After sellers supplied the market around the hot zone of 7229.20, the bulls swiftly swung into action. Gradually, they increased their tempo, leading to a breakthrough for the FTSE100.
However, the momentum indicator has lacked sufficient push in recent weeks. This indicator suggests that the bulls may have gone cold and might struggle to make further progress for now. Additionally, the Stochastic RSI (Relative Strength Index) reveals that the price is on the overbought side. This simply put buyers in a complex situation as they struggled to break through the key zone of 7764.30.
FTSE100 Short-Term Trend: Bullish
It is more likely that sellers will be playing their game well into 2024. However, there is no clear reversal in sight at the moment. The current conditions may present challenges for buyers. Nevertheless, it’s important to remain flexible and prepared for potential shifts in market sentiment.
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