FTSE100 (UKX) Ranges Ahead of a Possible Breakout

FTSE100 (UKX) Ranges Ahead of a Possible Breakout

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

FTSE 100 (UKX) Long-term Trend: Ranging
In the last 48 hours, FTSE 100 share prices have remained the same. That is from February 7 to February 9. At the beginning of 2020, the share was in a downtrend from the highs of 7,700 to the low of 7,300. FTSE 100 share begins to appreciate in February. The share appreciated the high of 7,500 and was resisted. This 7,500 is a previous price level in April 2019 where the share was resisted and fell to the low of 7,200.

The market always respects the previous price level. Therefore, if the selling pressure continues, the share will fall to the low of 7,200. The market is expected to move up if the share falls either to the low of 7,200 or 7,100. Meanwhile, FTSE 100 (UKX) share will resume its upward move.

UKX - Daily Chart

Daily Chart Indicators Reading:
FTSE 100 share is above 25% range of the daily stochastic. This indicates that the share is in bullish momentum. Meanwhile, this is in disagreement with the price action as the market is falling. The resistance at 7,500 is making the coin to fall. Besides, the 21-day and 50-day SMA are sloping horizontally indicating the sideways trend.

FTSE 100 (UKX) Medium-term Trend: Bearish
On the 4-hour chart, the market has formed a bearish double top. In December, the bulls attempted to break the overhead resistance but were resisted. The share pullback and continue trading. In January, the bulls made a repeat retest at the overhead resistance but were resisted and the share fell to the low of 7,300. The share is making another uptrend.

UKX - 4 Hour Chart

4-hour Chart Indicators Reading
On the 4- hour chart FTSE 100 (UKX) share is on level 51 of the Relative Strength Index period 14 indicates that the market is in the uptrend zone. The share has the chance of rising. This is because the share is above the centerline 50.

General Outlook for FTSE 100 (UKX)
The share is fluctuating between the levels of 7,100 and 7,700. The bulls and bears are yet to break the range-bound level since March 2019. The share has continued to fluctuate within a confined range. The Stochastic and the Relative Strength Index period 14 have indicated that FTSE 100 (UKX) share is likely to make an upward move.

FTSE 100 (UKX)Trade Signal
Instrument: FTSE 100 (UKX)
Order: NO SiGNaL
Entry price: NO SiGNaL
Stop: NO SiGNaL
Target: NO SiGNaL

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.