FTSE100 or also called the UK100 by many, is very often hard to read. The alligator indicator is giving mixed signals, as the moving averages are flat, but general trend is rather bearish. We assume this, because of the lower highes the index formes since May this year. Last week it droped to 7400 which was a level of support in September.
At the same time, the Williams Percent Range is somewhere in the middle, it actually lifted away from the oversold levels reached in August. This means there are investors, whose buying activity is keeping the levels above the previously mentioned support zone. FTSE100 is now above 7500 and it is close breaking above the 50 day moving average. We anticipate a specific price swing from this area and to see our prefered direction please visit out Go Premium section.
An important fact to mention is the value of the %R indicator. It is now below -35, which is a signal for an oversold market. Oversold market means the prices became too cheap. In addition to that, the index is forming a local zone of support for the past 5 days. Likely due to the oversold signal of the %R, buyers step in to buy from the bottom and the prices hold above 15 090. We anticipate a certain price move and to see what is our preferred direction please visit our Go premium section.
