FTSE100 (UKX) Surges Ahead of a Possible Breakout

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: Bullish
UKX is currently in an uptrend. A correction candle body tested the Fibonacci 0.618 retracement level. This indicates that the FTSE 100’s first target will be at the 1.618 extension level. Later, the uptrend will continue after the 1.618 retracement level.

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 risen to level 66 of the Relative Strength Index. The share is approaching the overbought region.

FTSE 100 (UKX) Medium-term Trend: Bullish
On the 4-hour chart, the market is an ascending channel. The share has broken the resistance line and closed above it. This indicates that the upward move will continue. The market will continue higher after level 6487.

4-hour Chart Indicators Reading
The market is above 80% range of the daily stochastic. This indicates that the share is now in the overbought region of the market. Sellers may emerge at the overbought region to push prices down. However, in a trending market, the overbought may not hold. The 21-day and 50-day SMAs are sloping upward indicating an uptrend.

General Outlook for FTSE 100 (UKX)
UKX share is now in an uptrend. The share appears to have entered the overbought region. It is unlikely if sellers may emerge in the overbought region as the market is still trending.

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