The bulls managed to pull the strings in the market after the price of FTSE 100 secured a new low on 3rd October 2019. Price is slowly heading towards the bearish trend line resistance at 7323.95 drawn from the high of 29th July. A closing above the critical trend line resistance level might lead target the next major resistance level at 7437.40, which is the high of 29th September.
However, the ongoing Brexit and U.S china issue associated with the recent attacks on the Gulf oil facilities has lowered down the investors’ confidence to a certain extent. Lack of confidence usually results in low participation in the investment industry which eventually holds the potential threat for extensive sell-off in the FTSE 100.
A strong rejection of the bearish trend line resistance at 7323.95 might target the 38.2 Fibonacci retracement level drawn from the low of 3rd October to the high of 28th October. From that level, we might see some active participation from the buyers since we have plenty of supportive candles and important Fibonacci retracement level just below the critical support at 7323.95. However, a clear break of the 61.8% Fibonacci retracement level at 7135.50 might target the low of 3rd October 2019. On the upside, we need to clear the high of 29th September, to experience some extended bullish rally.