FTSE100 (UKX) Sideways Move May lead to Breakout or Breakdown

FTSE100 (UKX) Sideways Move May lead to Breakout or Breakdown

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

FTSE 100 (UKX) Long-term Trend: Ranging
In January 2020, the share was in a downward movement from the high of 7,700 to the low of 7,300. In February, the share begins to appreciate. The share appreciated to the high of 7,500 and was resisted. This 7,500 is a historical price level in April 2019 where the share was resisted and it fell to the low of 7,200.

The market always respects the historical 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 implies that the share is in a bullish momentum. Meanwhile, this is in contradiction 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: Ranging
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 repelled and the share fell to the low of 7,300. The share is making another upward move.

UKX - 4 Hour Chart

4-hour Chart Indicators Reading
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)
FTSE 100 share is still on a sideways move. The bulls and bears have neither broken the support line nor resistance line. The share has continued to fluctuate within a confined range. The Stochastic and the Relative Strength Index period 14 have indicated that the share is likely to rise.

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

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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.