FTSE100 (UKX) - Technical View:
Simple explanation today -
Pattern wise: Came out of a larger triangle formation towards downside support areas.
At this current moment of time - It is within the range of: Support: 6785 Resistance: 6830
Once broken out of the range below support levels which matches the 200 EMA as a great support area measuring the wedge...
After the pandemic drop UKX is managed to gain back some of the earlier loses incurred during the initial nation wide lock down period. After the easing of
general restrictions and the hope of for economic recovery was started and UKX managed to rebound towards 6400.00 level. And the .50 Fibonacci retracement level
is acting as major barrier for the bullish...
I think that there will be a long-term correction wave in the global markets on a macro scale, in this context, I think we will observe a pattern in #UKX as I mentioned in the chart.. Markets will become very interesting after 3,4 months, we will wait and see..
What I wrote is about strong possibilities that most investors do not express or expect.. Please do...
UKX is approaching our first resistance at 7009(horizontal swing high resistance, 38.2% & 50% Fibonacci retracement , 61.8% Fibonacci extension ) where a strong drop might occur below this level pushing price down to our major support at 6746 (61.8% Fibonacci retracement , 100% Fibonacci extension, horizontal swing low support)
Stochastic (89,5,3) is also...
UKX is approaching our first support at 6768 (61.8% & 100% Fibonacci extension , 50% Fibonacci retracement) where a strong bounce might occur above this level pushing price up to our major resistance at 7045 (38.2% &50% Fibonacci retracement , 61.8% Fibonacci extension ).
Stochastic (34,5,3) is also approaching support where we might see a corresponding bounce in price.
My short-term bias is still bearish. I feel price will fall to at the least close the gap. I'm not confident this is a solid break of this short-term resistance as price has failed to take this level with any real conviction. Price is currently stalling at the 61.8 fib which I mapped out on the 1hr chart for this current retracement.
This is only a trading capability - no recommendation !!!
Next week i`ll confirm or change my opinion about this SetUp :)
Buying/Selling or even only watching is always your own responsibility ...