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The FTSE100 is starting to look unstoppable, as the leading UK index moves back above its key 200-day moving average with ease and also the psychological 7,500 resistance level.
Traders may be well served to buy the dip this week, given the energy pulsing through the UK100 index right now, and a moving back towards the index’s 200-day moving average could be a strong buying opportunity.
In terms of future upside targets, buyers are likely to target the current yearly high, around the 7,700 level, and the 8,000 level, which could be a natural upside target for the FTSE100.
Worryingly for bears, the 8,000 level is not the final indicated target, and the UK100 index could go much, much higher over the long-term past the 8,000. 8,500 is indicated by a rising price channel.
Sentiment towards the UK100 has flipped to bearish. According to the ActivTrader platform over 63 percent of traders are bearish towards the UK100. This is very bullish in contrary sentiment terms.
Typically, the retail crowd is on the wrong side of the trade more often than not, so the UK100 could continue to rise this week. Investors are totally ignoring the conflict in Ukraine, but retail remain cautious.
UK100 Short-Term Technical Analysis
The four-hour time frame shows that the UK100 index has advanced back towards its 200-period MA on the four-hour time frame, around the 7,400 level. The metric is very good to define the short-term trend.
Should we see a push back towards the 7,400 level it is likely that it will be a buying opportunity and a potential bounce spot back towards the 7,500-resistance level.
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UK100 Medium-Term Technical Analysis
The daily time frame shows that the FTSE100 has once again bounced from the bottom a rising price channel between the 7,000 and 8,500 price level.
Therefore, medium-term technical analysis provides a compelling case that a meaningful price floor is in fact in. A strong bounce is currently underway from a massive rising price channel across the higher time frames.
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