The FTSE 100 index is trading in a downtrend on a 4-hour time frame. This confirmed from the fact that the price is trading below the downward trend line shown in orange colour. The index did try to challenge this trend line but it failed to achieve its task. As long as we stay below this trend line, the trend line will remain intact. Having said this, it is important to keep in mind that the price is trading above the 50 and 100-day moving averages and these are shown in green and pink colour respectively. It is likely that the price may find some support near these moving averages however a break of these moving averages will send a strong bearish.

The RSI has eased off from its overbought zone and it is on its way to touch the oversold zone. There is no divergence between the price and the RSI and this confirms that the current trend has momentum behind it.

The support zone is shown by the green horizontal solid line.
The resistance zone is shown by the red horizontal solid line.

- advertisement -


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.