FTSE100 testing bearish resistance: Technical analysis
MarketsFN Team
The analysis of the FTSE100 was reported in previous articles, where it developed a correction down to test its March lows and 61.8% Fibonacci retracement of the uptrend started in October and lasted till February.
This week the gauge is testing the supply line that links lower highs and seems likely that a breakout will not materialize in this session. The RSI is moving near overbought area and now is at 64, while trailing volatility at 20 session has sharply increased. At the moment the FTSE100 is at 7,681.4, up 0.2%.
Most relevant daily moving averages started to develop a positive slope, and in case of a breakout of the dynamic resistance that is only few points away from current values, the next targets would be 7,930 and then the record high near 8,040.
If bearish pressure will come back FTSE100 would test 7,535 and then likely supports would be area 7,400 and then 7,215.
