The UK100 market, on the H4 time-frame, was in a short downward movement until the 10th of September when a lower bottom was recorded at 7207.0. Demand overcame supply with a Strong Bullish Candle that pushed past the previous lower top.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 7212.8 and 7207.0. This could have alerted technical traders to a possible reversal in the making.
After the bottom at 7207.0 the price broke through the 15 and 34 Simple Moving Average and the Momentum Oscillator briefly broke through the zero baseline before settling on the baseline. This confirmed a possibility technical price reversal.
A possible critical resistance level was formed on the 5th of September at 7336.3. The resistance level is located at a previous lower top.
If UK100 breaks through the critical resistance level at 7336.3, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 7336.3 and dragging it to a possible support level situated on the last lower bottom at 7207.0, the following targets may be calculated. The first target can be anticipated at 7416.2 (161 %). The second price target can be predicted at 7545.5 (261.8%) and the third and final target may be expected at 7754.7 (423.6%).
If the support level at 7207.0 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive attitude and demand overcomes supply, the outlook for the UK100 market on the H4 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 7212.8 and 7207.0. This could have alerted technical traders to a possible reversal in the making.
After the bottom at 7207.0 the price broke through the 15 and 34 Simple Moving Average and the Momentum Oscillator briefly broke through the zero baseline before settling on the baseline. This confirmed a possibility technical price reversal.
A possible critical resistance level was formed on the 5th of September at 7336.3. The resistance level is located at a previous lower top.
If UK100 breaks through the critical resistance level at 7336.3, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 7336.3 and dragging it to a possible support level situated on the last lower bottom at 7207.0, the following targets may be calculated. The first target can be anticipated at 7416.2 (161 %). The second price target can be predicted at 7545.5 (261.8%) and the third and final target may be expected at 7754.7 (423.6%).
If the support level at 7207.0 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive attitude and demand overcomes supply, the outlook for the UK100 market on the H4 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.