You are here: Home > articles > Forex > Technical Analysis – UK 100 index is stuck below 50.0% Fibonacci level following bullish rally from 6760
Technical Analysis – UK 100 index is stuck below 50.0% Fibonacci level following bullish rally from 6760
April 13, 2018 12:26 pmVideo
Latest News
- Trading Signals for EUR/USD for May 3-5, 2024: sell below 1.0803 (overbought – 5/8 Murray) May 3, 2024
- Trading Signals for GOLD for May 3-5, 2024: sell below $2,320 or below $2,300 (21 SMA – 200 EMA) May 3, 2024
- Technical Analysis – GBPUSD advances above descending trendline May 3, 2024
- USD experiences day X May 3, 2024
- Bitcoin licks wounds as Fed comes on the rescue – Crypto News May 3, 2024
- GBP/USD: trading plan for the US session on May 3rd (analysis of morning deals). The pound is preparing to get out of the May 3, 2024
- EUR and GBP may drop May 3, 2024
- EUR/USD: trading plan for the US session on May 3rd (analysis of morning deals). US data will be the key moment of the week May 3, 2024
- USD/JPY: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- GBP/USD: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- Video market update for May 03, 2024 May 3, 2024
- EUR/USD: Simple trading tips for novice traders on May 3rd (US session) May 3, 2024
- Could the BoE adopt a more dovish stance on Thursday? – Preview May 3, 2024
- EUR/USD. May 3rd. Bulls don’t give up without a fight May 3, 2024
- GBP/USD. May 3rd. Bears are counting on a strong US labor market May 3, 2024
- Market Comment – Stocks enjoy Fed-induced bounce as dollar slips ahead of NFP May 3, 2024
- Weekly Forex Outlook: 03/05/2024 – BoE and RBA decisions headline a calm week May 3, 2024
- Week Ahead – BoE and RBA decisions headline a calm week May 3, 2024
- USD/JPY: trading tips for beginners for European session on May 3 May 3, 2024
- GBP/USD: trading tips for beginners for European session on May 3 May 3, 2024
UK 100 index has reversed back up again after finding support at the 16-month low of 6760. The index is on track to record a third green week, however, looking at the 4-hour chart, the price is stuck below the 50.0% Fibonacci retracement level of the downleg from 7806 to 6760. The technical picture supports that the range bound is likely to continue in the short-term.
Technically, the momentum indicators are holding in the positive territory with weak momentum. The RSI indicator is moving slightly to the upside, however, the MACD oscillator is falling below its trigger line, creating negative divergence and signaling for a possible downside correction.
If the price surpasses the 7273.60 resistance level and jumps above the 50.0% Fibonacci, this would reinforce the bullish view and open the way towards the 7340 barrier. Above this level, the next target could come at the 61.8% Fibonacci mark of 7406, posting a new two-month high.
On the flip side, if the bears take back control, the bullish rally may stall initially near the latest highs and turn negative. In such a case, the next immediate support comes from the 38.2% Fibonacci near 7160, which stands near the 40-simple moving average (SMA) in the 4-hour chart. A potential downside violation of this barrier would raise the likelihood of more declines towards 7120 taken from the lows on April 6.
Related Posts: