{"id":2598,"date":"2021-01-18T09:09:48","date_gmt":"2021-01-18T09:09:48","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=2598"},"modified":"2021-01-18T11:24:37","modified_gmt":"2021-01-18T11:24:37","slug":"uk100-technical-analysis-dip-buyers-rewarded","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/uk100-technical-analysis-dip-buyers-rewarded\/","title":{"rendered":"UK100 Technical Analysis &#8211; Dip buyers rewarded"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2598\" class=\"elementor elementor-2598\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-05aa17e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"05aa17e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-35ea7a1\" data-id=\"35ea7a1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f5c7cb8 elementor-widget elementor-widget-text-editor\" data-id=\"f5c7cb8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The UK100 turned sharply lower last Friday, following bearish news that six European countries will be receiving COVID-19 vaccine deliveries later than anticipated. The news sent <a href=\"https:\/\/bit.ly\/37v2hgJ\" target=\"_blank\" rel=\"noopener\">European stock markets<\/a> reeling, and the leading UK index shiftily followed.<\/p><p>Other factors at work causing the latest pullback in global stock markets and the <a href=\"https:\/\/bit.ly\/3ra7ySw\" target=\"_blank\" rel=\"noopener\">FTSE100<\/a> include higher than expected US weekly jobless claims, negative US retail sales, and fears over rising US inflation, and a healthy dose of buy the rumour and sell the fact towards Joe Biden\u2019s $1.9 trillion relief package.<\/p><p>Stock markets had appeared tense prior to the recent correction in stock markets, as fears over the Italian politics caused Italian and <a href=\"https:\/\/bit.ly\/3hpdm6i\" target=\"_blank\" rel=\"noopener\">German bond<\/a> spreads to wide, while rising COVID-19 infections across the globe started to chip-away at market sentiment.<\/p><p>The UK100 briefly dipped under the 6,700 level during Friday\u2019s pullback in global stock markets, however, bulls quickly stepped in, and took the index back towards the 6,750-resistance area.<\/p><p>Perhaps the biggest test for the UK100 this week will be how broader financial markets cope with the prospect of dwindling global growth, inflationary pressures, and rising COVID-19 infections. The index is likely to break to the downside if bearish market sentiment spills over into early-week trade.<\/p><p><a href=\"https:\/\/bit.ly\/2KsvkJ3\" target=\"_blank\" rel=\"noopener\">Oil<\/a> and pharmaceutical companies, which make up a heavy weighting of the UK 100, are likely to come under pressure if the risk-off market tone continues. Traders should also be aware that <a href=\"https:\/\/bit.ly\/38SvOkV\" target=\"_blank\" rel=\"noopener\">Burberry<\/a> and Dixons Carphone are releasing third fiscal quarter earnings this week.<\/p><p>From a technical standpoint, the index still looks very good while the price trades above the 6,700 level. The fact that bulls quickly defended this key technical area on Friday is certainly encouraging in the short-term.<\/p><p><strong>UK100 Short-Term Technical Analysis<\/strong><\/p><p>The one-hour time frame currently shows that the UK100 is trapped inside a bullish falling price channel. Typically, falling price channels break to the upside, and particularly so during pronounced uptrends.<\/p><p>According to technical analysis, the falling price channel is currently located between the 6,815 and 6,670 levels. During Friday\u2019s sudden price drop, the UK100 bounced close to the bottom of the channel but did not fully test trendline support.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-374d60f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"374d60f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b14f97f\" data-id=\"b14f97f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0b6f2d1 elementor-widget elementor-widget-image\" data-id=\"0b6f2d1\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/UK100-4H.png\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f7ac624 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f7ac624\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-da29891\" data-id=\"da29891\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1ce5786 elementor-widget elementor-widget-text-editor\" data-id=\"1ce5786\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c134635 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c134635\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e1b8bc0\" data-id=\"e1b8bc0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3ae1e63 elementor-widget elementor-widget-text-editor\" data-id=\"3ae1e63\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The fact that the price did not fully test the bottom of the price channel could suggests that sellers could test one more time towards the bottom of the channel for technical confirmation.<\/p><p>According to the overall size of the falling price channel, a directional move of around 150 points should take place once a break from the channel occurs.<\/p><p><strong>UK100 Medium-Term Technical Analysis<\/strong><\/p><p>Looking at the daily time chart the overall importance of the 6,700 level is once again underscored, due to the presence of a key long-term trendline, which the market once again tested on Friday.<\/p><p>The strong bounce from the long-term trendline certainly points to continued demand for the FTSE100 on technical pullbacks. Furthermore, a recently invalidated head and shoulders pattern continues to point to 7,000 as a potential bullish target.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ce4fdd5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ce4fdd5\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8f7866e\" data-id=\"8f7866e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ada4f3d elementor-widget elementor-widget-image\" data-id=\"ada4f3d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/UK100-1D-3.png\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e802d0e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e802d0e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f36568a\" data-id=\"f36568a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-fd5219c elementor-widget elementor-widget-text-editor\" data-id=\"fd5219c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1d30cc7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1d30cc7\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ca59bb8\" data-id=\"ca59bb8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8c645e7 elementor-widget elementor-widget-text-editor\" data-id=\"8c645e7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>A large, inverted head and shoulders pattern will also form if the UK100 reaches the 7,800 level. It is also worth looking at key moving averages. The UK100 closed the week below its 7-day moving average, at 6,800. This is a key area to watch if a recovery takes hold.<\/p><p>Also, the index\u2019s 20-day moving average is a key downside level to watch if the correction continues and is located at 6,625. The 50-day moving average remains some way away and is located at 6,470.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The UK100 turned sharply lower last Friday, following bearish news that six European countries will be receiving COVID-19 vaccine deliveries later than anticipated. The news sent European stock markets reeling, and the leading UK index shiftily followed. Other factors at work causing the latest pullback in global stock markets and the FTSE100 include higher than [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":2599,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6,9,2],"tags":[45,64,212,57,152,140],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>UK100 Technical Analysis - Dip buyers rewarded - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/uk100-technical-analysis-dip-buyers-rewarded\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UK100 Technical Analysis - Dip buyers rewarded\" \/>\n<meta property=\"og:description\" content=\"The UK100 turned sharply lower last Friday, following bearish news that six European countries will be receiving COVID-19 vaccine deliveries later than anticipated. The news sent European stock markets reeling, and the leading UK index shiftily followed. Other factors at work causing the latest pullback in global stock markets and the FTSE100 include higher than [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/uk100-technical-analysis-dip-buyers-rewarded\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-18T09:09:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-18T11:24:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/GettyImages-1264007133.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"509\" \/>\n\t<meta property=\"og:image:height\" content=\"260\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nathan Batchelor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nathan Batchelor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/youtrading.com\/en\/uk100-technical-analysis-dip-buyers-rewarded\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/uk100-technical-analysis-dip-buyers-rewarded\/\"},\"author\":{\"name\":\"Nathan Batchelor\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/88ce8e6688d6c690a83e6cbeee2eccab\"},\"headline\":\"UK100 Technical Analysis &#8211; 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He holds a degree in Business and Finance and has an extensive background providing research for prop houses, and fund managers. 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The news sent European stock markets reeling, and the leading UK index shiftily followed. 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