FTSE100 (UKX) Recovers From Downtrend, Uptrend Likely

FTSE100 (UKX) Recovers From Downtrend, Uptrend Likely

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

FTSE 100 (UKX) Long-term Trend: Bullish
UKX is currently in an uptrend. The share made an upward move as it reached the high of Level 6490. At the recent high, the share was resisted and it retraced to level 6076. A correction candle tested the 0.50 Fibonacci retracement level. This indicates that the share will rise to level 2.0 Fibonacci extension level. This is equivalent to level 7200.

UKX – Daily Chart

Daily Chart Indicators Reading:
The SMAs are sloping upward indicating the uptrend. The SMAs have a bullish crossover. The 21-day SMA crosses over 50-day SMA indicating a bullish trend. The share has fallen to level 47 of the Relative Strength Index. This indicates that the share has fallen to the downtrend zone and below the centerline.

FTSE 100 (UKX) Medium-term Trend: Bullish
On the 4-hour chart, the market is an ascending channel. The share was in an uptrend as price broke the resistance line. The bulls could not sustain the upward move as bulls were repelled. The market fell above the support line. The share is likely to resume an upward move if the current support holds.

UKX – 4 Hour Chart

4-hour Chart Indicators Reading
UKX share is now in the oversold region. UKX has fallen below 20% range of the daily stochastic. This indicates that buyers are likely to emerge to push prices upward. The SMAs are sloping down indicating the downtrend. The price is currently above the support line which may arise if the support holds.

General Outlook for FTSE 100 (UKX)
FTSE 100 appears to have exhausted selling pressure as the market reached the oversold region. The share tested the 21-day SMA and it is falling toward the support line. The market will rise if the current support holds.

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Author : Azeez Mustapha


Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.