Last week, FTSE 100 sharply drop in the global market after rejecting the major resistance at 7444.57. However, the bulls regained their strength after the blue-chip price found some decent support at 7138.14. Price started to rally higher after forming a bullish morning star pattern at 7138.14. Currently, the bulls are trying to clear the resistance at 7252.11. Breaking above this level might be tough since the resistance is reinforced by a 38.2% retracement zone (Drawn from high of 27 November to 3rd December). A daily closing of the price above 7252.11 might bump up the FTSE 100 index. Eventually, the blue-chip is most likely to test the 61.8% retracement level at 7324.99.
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On the down, we need a strong rejection of 7252.11 to experience bearish action. Any bearish rejection of the 38.2% retracement level, might lead FTSE 100 towards the next support at 7138.14. This level might provide fresh buying momentum to the blue-chips. However, price breaking below this level might target the low of 3rd October at 7007.34. But having such an extended drop in the blue-chips is highly unlikely in the current scenario. However, we need to clear the resistance at 7252.11 before we see some fireworks in FTSE 100 index. Investors are advised to stay cautious until the FTSE 100 index offers definitive trading opportunities.Download our latest quarterly market outlook for our longer-term trade ideas.
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