The FTSE 100 is currently in a very interesting pattern initiated in May 2018. Since this date, regularly, new tops have been formed (4 in total this year from February), combined with an uptrend initiated in March 2020.
It is a long term pattern clearly visible in the Daily, Weekly and Monthly charts. RSI and MACD also confirm the all recent moves.
Recently, in the second half of September, the index broke the uptrend from above accompanied by stronger volume in what is a strong sell signal, with an potential to go as low as 4,300 points.
However, after quickly losing 500 points, the FTSE 100 is now back on the rise and this is where it becomes interesting.
Two scenarios are therefore possible:
1. the Index will test again the uptrend line around 7,300 / 7,400 points before confirming the downtrend.
2. the Index will carry on upward and finally break the resistance at 7,600 and aim for new a historical high, with a potential view to hit 10,000
The next few days will decide
It is a long term pattern clearly visible in the Daily, Weekly and Monthly charts. RSI and MACD also confirm the all recent moves.
Recently, in the second half of September, the index broke the uptrend from above accompanied by stronger volume in what is a strong sell signal, with an potential to go as low as 4,300 points.
However, after quickly losing 500 points, the FTSE 100 is now back on the rise and this is where it becomes interesting.
Two scenarios are therefore possible:
1. the Index will test again the uptrend line around 7,300 / 7,400 points before confirming the downtrend.
2. the Index will carry on upward and finally break the resistance at 7,600 and aim for new a historical high, with a potential view to hit 10,000
The next few days will decide