Published: 2024-09-17T09:38:59.000Z
Chartbook: UK Chart FTSE 100 Update: Range extension, but studies are coming under pressure
Senior Technical Strategist
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The anticipated break below support at the 8047 year high of February 2023 and congestion around 8000 has bounced smartly from 7915
The anticipated break below support at the 8047 year high of February 2023 and congestion around 8000 has bounced smartly from 7915,
with prices once again trading in multi-month range extension, capped by the 8474 all-time high from May 2024.
Weekly stochastics and the weekly Tension Indicator are under pressure once again, highlighting potential for a fresh test lower in the coming weeks.
A close below 8000/47 would add weight to sentiment and complete a multi-month distribution top beneath 8047, as focus then turns to congestion around 7800.
Monthly charts are also under pressure and bullish longer-term charts are showing signs of exhaustion/flattening, pointing to potential for a further close beneath here and a deeper reaction towards congestion around 7500.
Meanwhile, resistance is at 8474.
A close above here would complete the current multi-month consolidation pattern and turn sentiment positive, as bullish sentiment is regained.
Multi-year gains would then target 8500, with potential for continuation towards next significant resistance at 9000.