FTSE100 (UKX) in a Period of Consolidation Slides below 7000 Support Level

FTSE100 (UKX) in a Period of Consolidation Slides below 7000 Support Level

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

FTSE 100 (UKX) Long-term Trend: Bearish
FTSE100 share has been in a sideways trend between April and December 2019. In July the market went up as price tested the upper price range on three occasions and was repelled. UKX fell to the lower price range and bounced back.

An Investor should have bought this share in August when the prices were low. There is always a slogan that says “we buy low and sell high”. Nonetheless, in December and January, the market went up to test the 7600 overhead resistance. The bulls were repelled and the downward move was amazing as the price drops to the low of 6600.

UKX – Daily Chart

Daily Chart Indicators Reading:
FTSE 100 drops below the 20% range of the daily stochastic. This indicates that the market is in the oversold region. Selling 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, FTSE 100 is also in a sideways trend as the market fluctuates between 7200 and 7600. UKX fell after the resistance at 7400. The bearish momentum is strong as the market fell to the low of 6468.

UKX – 4 Hour Chart

4-hour Chart Indicators Reading
On the 4- hour chart FTSE 100 has fallen below level 20 of the Relative Strength Index period 14 specify that the market reached the oversold region. As usual, buyers will emerge to push the coin upward. In the oversold region, selling has been overdone.

General Outlook for FTSE 100 (UKX)
UKX share fell to the low of 6466 and commences an upward move. This is the low an investor should have been a shareholder. As the company share appreciates, the dividend will h

FTSE 100 (UKX)Trade Signal
Instrument: FTSE 100 (UKX)
Order: Buy
Entry price: 6694
Stop: 6500
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.