Chartbook: UK Chart FTSE 100 Update: Range extension, studies turning higher

The anticipated test lower has once again bounced smartly from support at congestion around 8000 and the 8047 year high of February 2023,

with prices currently trading around 8350.

Both monthly stochastics and the monthly Tension Indicator are flattening, highlighting a cautious tone and room for further consolidation within the range from April 2024.

Longer-term studies are mixed/positive, highlighting a broadly constructive tone into the coming months, but a close above critical resistance at the 8474 all-time high from May 2024 and psychological barrier at 8500 is needed to confirm completion of the multi-month accumulation pattern and extend prices to historic highs.

Next significant reactions will then be anticipated at 9000.

 

Meanwhile, support remains at 8000/47.

A close beneath here would add weight to sentiment and classify the current consolidation phase as a distribution top.

Focus would then turn to congestion around 7800, but rising weekly studies should limit any tests of here in fresh buying interest.