FTSE100 (UKX) Falls After Testing the Overbought Region

FTSE100 (UKX) Falls After Testing the Overbought Region

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

FTSE 100 (UKX) Long-term Trend: Bearish
The share value of FTSE 100 has been fluctuating between 7000 and 7600 in April and December 2019. Many times the bulls have made unsuccessful attempts at the resistance without breaking through it. Recently, in February the bulls made attempt at the resistance but the resultant effect made the share fall terribly to the low of 5965. UKX share has fallen and reached the oversold region of the market. As usual, the current support may hold, if the selling pressure has been exhausted.

UKX – Daily Chart

Daily Chart Indicators Reading:
UKX drops below the 20% range of the daily stochastic. This indicates that the market is in the oversold region. The share fell into the oversold region twice. In the second fall, the price is not fully inside the oversold region. The Selling pressure has been overdone and buyers are likely to emerge to push UKX upward. The 50-day SMA and the 21-day SMA are sloping southward indicating that UKX is falling.

FTSE 100 (UKX) Medium-term Trend: Bearish
On the 4-hour chart, UKX fluctuates between 7200 and 7600. It fell after the resistance at 7400. The bearish momentum is strong as the market fell to the low of 6468.

4-hour Chart Indicators Reading
On the 4- hour chart, the share is also in a range-bound move as it fell below level 20 of the Relative Strength Index period 14. As usual, buyers will emerge to push the coin upward. In the oversold region, selling has been overdone.

UKX – 4 Hour Chart

General Outlook for FTSE 100 (UKX)
FTSE 100 share has fallen and reached the oversold region of the market. This is the appropriate time to invest in the share as the price has fallen. As traders, we buy low and sell high. Investors can do the same as the price has fallen low.. Presently, the market price is currently at

FTSE 100 (UKX)Trade Signal
Instrument: FTSE 100 (UKX)
Order: Buy
Entry price: 5965
Stop:  5000
Target: 7600

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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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.