FTSE100 Reaches Oversold Region as It May Reverse at 6999.77

Estimated Reading Time: 3 minutes

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Azeez Mustapha

Updated: 13 October 2022

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

FTSE 100 (UKX) Long-term Trend: Ranging
FTSE 100 (UKX) price is in a downtrend as it may reverse at 6999.77. The index has declined to the low of level 7044 as it approaches the previous low of level 6787.00. Meanwhile, on June 14 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that UKX will fall to level 1.272 Fibonacci extension or level 6999.77. From the price action, the index has fallen to the low of level 7044.99.

FTSE100 Reaches Oversold Region as It May Reverse at 6999.77 — UKX – Daily Chart

Daily Chart Indicators Reading:
UKX is at level 32 of the Relative Strength Index for period 14. UKX will be oversold when it falls to level 30. The 21-day line SMA and the 50-day line SMA are sloping southward indicating a downtrend. The index price bars are below the moving averages indicating the downtrend.

FTSE 100 (UKX) Medium-term Trend: Bearish
On the 4-hour chart, UKX is in a downtrend. The bears pushed the price to the low of level 7135 as bulls bought the dips. The index made an upward correction but was repelled at the high of level 7313. Meanwhile, on June 14 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that UKX will fall to level 1.272 Fibonacci extension or level 6999.77. From the price action, the index has fallen to the low of level 7044.99.

4-hour Chart Indicators Reading
UKX is below the 20% range of the daily stochastic. The market has reached the oversold region of the market. The downtrend is likely to subside. The 21-day line and the 50-day line SMAs are sloping southward indicating the downtrend.

General Outlook for FTSE 100 (UKX)
FTSE 100 (UKX) is in a downward move as it may reverse at 6999.77. The index is approaching the oversold region of the market. UKX is likely to reverse as it has fallen below the 20% range of the daily stochastics.

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