After bouncing off from the low of 3rd October 2019 at 7028.9, the FTSE 100 bulls are showing promising strength by creating new higher highs associated with a higher low. The trend line drawn from the high of 30th July at 7712.77 was one of the main obstacles for the FSTE index rally. The firm 0.3% gain in the UK
Blue chips index intensified the buying momentum in the FTSE 100 index. Currently, the UK 100 index is heading towards the critical resistance level at 7442.5 which is also the high of 27th September. A daily closing of the price above the 7442.5 might bump up the price of FTSE 100.
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FTSE 100 index price might prepare for an extended rally upon the break of the 7442.5. With a break of this level, the price might target the resistance level at 7712.5 created on 29th July. Failing to clear the high of 29th July (7712.5) might cause exhaustion in the medium-term uptrend. On the downside, failing to push through the resistance at 7442.5, the FTSE index might slips towards the immediate support at 7246.8, low of 1st November. Though we have plenty of supportive candles below this level, drop in the UK 100 index price from that support, might push the FTSE index price towards the immediate support level at 7028.9, low of 3rd October.Download our latest quarterly market outlook for our longer-term trade ideas.
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