The upward momentum is picking up and the chances are that the FTSE price may move higher
The FTSE 100 index is testing the downward trend line on a 4-hour time frame. Given that the price is trading below the downward trend line, it confirms that the current trend is to the downside. Having said this, the upward momentum is strong because the price is trading above the 50 and 100-day moving averages shown in pink and green respectively.
Looking at the candle price action, it appears that the price is likely to break above the downward trend line because we have a bullish harami candle pattern.
The RSI shows that investors should take caution because the price is trading in the oversold region, however, the most recent trend shows a retracement is taking place which is in line with the price.
