FTSE100 (UKX) Plunges, Unable to Sustain Above Level 6000

Estimated Reading Time: 2 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: Bearish
FTSE100 was in an upward move as the share reached level 6129.60. Since April 30, the share has been on a downward move. Presently, the price fell and found support above 21-day SMA. The market will resume an upward move if the 21-day SMA support holds. On the other hand, price will fall to level 5500 if the 21-day SMA support is breached.

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are still sloping southward indicating the downtrend. The 21-day SMA is making a U-turn indicating the previous bullish move. From the price action, the market is showing a bearish signal.

FTSE 100 (UKX) Medium-term Trend: Bearish
On the 4-hour chart, the market is in an ascending channel. The share has already moved up to the high of level 6129. Presently, price is falling and is likely to break the support line. A break below the support line will indicate a further downward move. As at the time of writing the market is showing a bearish signal.

4-hour Chart Indicators Reading
The market is falling and it is below 20% range of the daily stochastic. This indicates that price is approaching the oversold region. From the price action, a break below the support line will push the share to reach a low of 5500.

General Outlook for FTSE 100 (UKX)
The share is presently falling. It is unclear if the selling pressure has been exhausted. UKX uptrend has been hampered due to stiff resistance at level 6000. It appears the downward move may continue given the bearish signals.

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