FTSE 100 (UK100) Potential Bearish Reversal from Order Block
Analysis Summary
Higher High (HH) and Strong High: The HH near 8,420, along with the strong high marked on the chart, indicates a recent resistance level that has established an area of potential selling pressure. The current structure suggests that the market is struggling to maintain upward momentum from these highs.
Change of Character (CHoCH): Multiple CHoCH levels indicate shifts in market sentiment. A key CHoCH to the left suggests a transition from bullish to bearish bias, while recent bullish retracement has encountered resistance within the current structure.
Order Block: The blue-shaded order block around 8,300 represents a potential resistance area where sellers may step in if the price reaches this level again. This zone is likely to act as a key supply area, potentially triggering a reversal if tested.
Weak Low: The weak low around 8,080 marks a vulnerable support level. If the bearish momentum continues, this low could be tested and possibly broken, confirming further downside potential.
Potential Scenarios:
Bearish Continuation: If the price retraces to the order block around 8,300 and encounters resistance, it could resume its downtrend, targeting the weak low at 8,080 and possibly lower levels if bearish pressure intensifies.
Short-Term Bullish Retracement: A retracement into the order block would provide an opportunity for sellers to re-enter the market. However, if the price breaks above this order block, it may invalidate the bearish scenario and indicate a potential trend reversal.
Conclusion
The FTSE 100 chart suggests a bearish outlook with a potential retracement to the 8,300 order block. Traders may look for signs of rejection in this zone as a shorting opportunity, aiming for targets around the weak low at 8,080. Reactions within the order block will be crucial in determining the next move.
Higher High (HH) and Strong High: The HH near 8,420, along with the strong high marked on the chart, indicates a recent resistance level that has established an area of potential selling pressure. The current structure suggests that the market is struggling to maintain upward momentum from these highs.
Change of Character (CHoCH): Multiple CHoCH levels indicate shifts in market sentiment. A key CHoCH to the left suggests a transition from bullish to bearish bias, while recent bullish retracement has encountered resistance within the current structure.
Order Block: The blue-shaded order block around 8,300 represents a potential resistance area where sellers may step in if the price reaches this level again. This zone is likely to act as a key supply area, potentially triggering a reversal if tested.
Weak Low: The weak low around 8,080 marks a vulnerable support level. If the bearish momentum continues, this low could be tested and possibly broken, confirming further downside potential.
Potential Scenarios:
Bearish Continuation: If the price retraces to the order block around 8,300 and encounters resistance, it could resume its downtrend, targeting the weak low at 8,080 and possibly lower levels if bearish pressure intensifies.
Short-Term Bullish Retracement: A retracement into the order block would provide an opportunity for sellers to re-enter the market. However, if the price breaks above this order block, it may invalidate the bearish scenario and indicate a potential trend reversal.
Conclusion
The FTSE 100 chart suggests a bearish outlook with a potential retracement to the 8,300 order block. Traders may look for signs of rejection in this zone as a shorting opportunity, aiming for targets around the weak low at 8,080. Reactions within the order block will be crucial in determining the next move.
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