Jump to content

FTSE 100 Technical Analysis: Big Inflection Point Created at Support


Recommended Posts

FTSE 100 TECHNICAL HIGHLIGHTS:

  • The FTSE rushed through but reversed to close above big support
  • Major horizontal support and trend-line are in confluence
FTSE 100 Technical Analysis: Big Inflection Point Created at Support

The FTSE 100 has recently fallen with a lot of momentum, but that came to a pause yesterday with a powerful reversal candle forming. The forming of the candle is one thing, but where it occurred at is another.

There is strong confluent support around 6870/6780, created by the rising trend-line off the March 2020 low and several intermediate-term turning points created since a peak created in January 2021. There were three instances of a low within a 10 handle range of one another.

These were carved out in May, July, and September last year. The multiple turning points on this horizontal line give it a lot of weight as a support level the market should respect. Couple it with a trend-line and proper price action, and you have a line-in-the-sand.

Not saying it will hold for a long time, as we have seen given the nature of this market cycle’s catalyst – a highly unpredictable situation – that exhaustion moves can become even more exhausted. But for now as long as Monday’s low at 6787 holds on a closing basis, then the outlook is neutral to bullish.

We may only see a bounce ensue before more selling occurs, hard to say at this juncture how much the market can rally. If we see a close develop below yesterday’s low, then we will need to respect the fact that a big level of support was broken and run with a bearish bias.

 

FTSE DAILY CHART

ftse daily chart

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst. 8th March 2022. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Ever feel like you're stuck in crypto traffic? Slow transactions and outrageous fees are the bane of using blockchains like Ethereum at their core (Layer 1). These networks can only handle a limited number of transactions per second, causing major congestion during peak hours. The result? Frustratingly slow processing and expensive fees for users.   But wait, there's hope! Layer 3 rollups are here to revolutionize the game. Imagine them as express lanes built on top of existing bypass roads (Layer 2 solutions). Layer 2 already helps by alleviating some of the traffic on the main highway (Layer 1). Layer 3 rollups take it a step further, adding dedicated express lanes to these bypass roads for super-fast processing. This innovative approach tackles Layer 1's congestion by distributing the workload across multiple layers, ultimately leading to faster, cheaper, and more scalable blockchain applications.   While specific layer 3 implementations are still under development, some projects are paving the way. Immutable X (IMX token) built on StarkNet (a Layer 2 scaling solution) and dYdX (DYDX token), a decentralized exchange on StarkNet, are both exploring layer 3 rollups to achieve even smoother transactions. Keep an eye out for zkLink Nova, a major player in the scalability game. This cutting-edge technology leverages the strengths of existing solutions to deliver groundbreaking performance. Backed by leading crypto institutions with over $23 million invested in the zkLink ecosystem, zkLink Nova is generating serious buzz ahead of its ZKL token listing on Bitget. Get ready for a smoother ride on the crypto highway!
    • Well, I didn't mine $PIXFI but I was able to make good profit from Bitget Poolx. 
    • This partnership further shows Bitget continuous passion for massive crypto adoption 
×
×
  • Create New...
us