FTSE 100 Under Selling Pressure
AvaTrade | Jul 28, 2015 06:42AM ET
The FTSE 100 index is trading below its downward trend line on a 4 hour time frame. This confirms that the trend is towards the downside. Further confirmation of this comes from the 50 and 100 day moving averages (shown in yellow and red respectively) which are trading well above the price. This translates that the bears are ins ting control of the price. The volatility for the index is high as it has pierced the Bollinger band but piercing of the Bollinger band only has its significant importance when this takes place at an important level of support or resistance.
The RSI is bouncing from the over sold zone and this shows that the oversold element of this may be on the verge of correction.
Important zone
6266 – 6233 Support
6769 – 6724 Resistance
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam
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