FTSE100 (UKX) holds at lower levels, Possible Bullish Double Bottom Likely

FTSE100 (UKX) holds at lower levels, Possible Bullish Double Bottom Likely

Resistance Level: 7,500, 7, 600, 7,700
Support Level: 7,300, 7,200, 7,100

FTSE 100 (UKX) Long-term Trend: Ranging
Yesterday, the market fell to a low of 7,833 and  the stock continues its downward move to the low of 7,280. This has been the scenario since January 17. The bottom line is that the price will continue to fall until it reaches the support of 7,100. From the chart, the stock prices are pointing to the bottom of the chart.

Each time the market falls to the lower price range, the upward move will begin to complete the range-bound movement. Eagerly, range-bound traders can take advantage of the fluctuations in price. As the stock falls at the lower price range, a long trade should be initiated. Then you exit your long trades at the upper price range. Similarly, at the upper price range, you should initiate short trade. All your short trades should be exited near the lower price range.

UKX - Daily Chart

Daily Chart Indicators Reading:
FTSE 100 stock is trading in the oversold region of the market. The stock is below 20% range of the daily stochastic. In the oversold region, sellers will not be available to continue to push the stock downward. Rather, buyers will emerge to push prices upwards. At the moment, the 21-day SMA and the 50-day SMA are sloping horizontally indicating the range-bound movement.

FTSE 100 (UKX) Medium-term Trend: Bearish
On the 4-hour chart, the price action formed a bearish double top which makes the stock fall. The price will fall, retest and continue the downward move. The selling pressure is likely to continue.

UKX - 4 Hour Chart

4-hour Chart Indicators Reading
FTSE 100 stock has fallen and reached level 26 of the Relative Strength Index period 14. This indicates that the stock has reached the oversold region. Buyers likely are to emerge.

General Outlook for FTSE 100 (UK)
FTSE 100 stock is trading at the oversold region of the market. Traders are to take advantage to initiate long trades. Presently, the stock is fluctuating between a confined range. All long trades to be closed at the upper price range.

FTSE 100 (UKX) Trade Signal

Instrument: FTSE 100 (UKX)

Order: Buy Limit

Entry price: 7,100

Stop: 7,000

Target: 7,600

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.