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FTSE 100 Rejects Critical High, A Correction Might Take Place


The FTSE 100 started its bullish rally after finding decent support at 7007.79, low of 3rd October 2019. The FTSE bulls pushed the price higher showing promising strength. However, rally in the FTSE 100 was capped by the critical resistance at 7434.75 which is also the high of November 7. Strong rejection in the 4-hour chart in the FTSE index suggests bearish correction might take place. However, a daily closing of the price above the 7434.75 level, might push the FTSE index higher. Break above that level might lead this pair towards the next critical resistance at 7714.89, high of 29 July.

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On the downside, failing to break above the 7434.75 might refuel the FTSE 100 bears. Eventually, the FTSE price might retest the immediate support level at 7245.74.FTSE bears might have a tough time breaking below that critical support since plenty of supportive candles might reinforce the bullish stance. However, a break below the 7245.74 zones might result in a free fall in the price of FTSE and the new bearish target might be the low of October 3 at 7007.79. Considering all the technical parameters, the FTSE 100 index is now trading at a critical level since the bears might regain control at any moment. So, optimistic buyers are advised to stay cautious.Download our latest quarterly market outlook for our longer-term trade ideas.

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