FTSE 100 Reaches Overbought Region but Unable to Break Level 7700
Resistance Level: 7500, 7600, 7700
Support Level: 7300, 7200, 7100
FTSE 100 (UKX) Long-term Trend: Bullish
FTSE 100 (UKX) price is in an uptrend but unable to break Level 7700. Since January 2022, buyers have been struggling to break above level 7700 resistance . On each occasion, the index will fall below the moving averages. Meanwhile, on March 29 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that UKX will rise but reverse at level 1.272 Fibonacci extension or level 7817.20.
Daily Chart Indicators Reading:
UKX is at level 59 of the Relative Strength Index for period 14.UKX is trading in the bullish trend zone and capable of a further upward move. The index price bars are above the moving average indicating a possible upward move. The 21-day line SMA and the 50-day line SMA are sloping upward indicating upward
FTSE 100 (UKX) Medium-term Trend: Bullish
On the 4-hour chart, UKX is in a smooth uptrend. The index is fluctuating below the level 7700 resistance zone. The uptrend has been stuck below the resistance level because of the presence of small body candlesticks called Doji. The candlesticks indicate that buyers and sellers are undecided about the direction of the market.
4-hour Chart Indicators Reading
UKX is above the 80% range of the daily stochastic. The index has reached the overbought region. Further upward move is unlikely as the market reaches the overbought region. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend. The index price is above the moving averages.
General Outlook for FTSE 100 (UKX)
FTSE 100 (UKX) is trading in the overbought region of the market but unable to break Level 7700. The index will decline as buyers fail to break the resistance at level 7700. Nonetheless, the market will rise if the resistance is breached.
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