You are here: Home > articles > Forex > Technical Analysis – UK 100 cash index back inside key range
Technical Analysis – UK 100 cash index back inside key range
May 30, 2023 11:27 amVideo
Latest News
- Technical Analysis – JP 225 index tests crucial support zone April 16, 2024
- Market Comment – Stocks slide, dollar soars as rate cut bets take another hit April 16, 2024
- Forex forecast 04/16/2024: EUR/USD, USDX, Gold and SP500 from Sebastian Seliga April 16, 2024
- GBP/USD: trading tips for beginners for European session on April 16 April 16, 2024
- EUR/USD: trading tips for beginners for European session on April 16 April 16, 2024
- What’s next for markets amid Israel-Iran tensions? – Special Report April 16, 2024
- Technical Analysis – GBPUSD pulls back into the negative zone April 16, 2024
- Geopolitical developments and stronger US data push volatility to new highs across the board – Volatility Watch April 16, 2024
- Technical Analysis – AUDUSD breaks the lower bound of a sideways range April 16, 2024
- Video market update for April 16, 2024 April 16, 2024
- Hot forecast for EUR/USD on April 16, 2024 April 16, 2024
- Technical Analysis – EURUSD dives further near 1.0600 April 16, 2024
- XM 2024 Ramadan Promotion Winners April 16, 2024
- EUR/USD and GBP/USD: Technical analysis on April 16 April 16, 2024
- Key events on April 16: fundamental analysis for beginners April 16, 2024
- Overview of the GBP/USD pair. April 16th. The pound may rebound, but the flat is over, and there are no reasons for growth April 16, 2024
- Trading plan for GBP/USD on April 16. Simple tips for beginners April 16, 2024
- Trading plan for EUR/USD on April 16. Simple tips for beginners April 16, 2024
- Overview of the EUR/USD pair. April 16th. In plain text: The ECB will cut rates in June April 16, 2024
- Forecast for EUR/USD on April 16, 2024 April 16, 2024
The UK 100 cash index has been trading sideways over the past few trading sessions, as it has returned inside the 7,599-7,689 range that acted as strong resistance during the January-December 2022 period. This area was eventually broken forcefully in January 2023, but it has now come into play again. In addition, a series of lower highs and higher lows is supporting the current index move.
The momentum indicators appear to be mixed at this stage. The Average Directional Movement Index (ADX) is edging higher and signaling a decent bearish trend, and the RSI is hovering below its 50-threshold point. On the other hand, the stochastic oscillator has dropped to its oversold area. However, it can stay there for a while, allowing the bears to keep pushing the index even lower.
Should the bears manage to overcome the lower boundary of the aforementioned range, they would quickly come up against the support set by the 200-day simple moving average (SMA) and the 38.2% Fibonacci retracement level of the October 13, 2022 – February 16, 2023 uptrend at 7,528-7,533 range. The path then looks clear until the 7,375 level.
On the other hand, the bulls are keen on pushing the index above the 7,703 level. The 7,729-7,771 area, populated by the 23.6% Fibonacci retracement and the 100-day SMA respectively, awaits them, a tad below the Jan 15, 2018 high of 7,806.
To sum up, the UK 100 cash index appears to be stuck in a key range. A break lower could quickly lead the index towards the 7,375 area. On the other hand, the path higher looks much tougher.
Related Posts: