The FTSE 100, like its global peers, has been caught in the crosswinds of rising volatility over the past fortnight. Let’s break down the key levels to watch, the indicators helping to make sense of the current backdrop, and how the recent sell-off has played out beneath the surface at the sector level.
Daily Timeframe: Shift in Momentum
The sharp sell-off on Friday 4th April marked a clear turning point in the momentum dynamics for the FTSE 100. The index cut cleanly through its 200-day moving average, and the rebound that followed has been weak in comparison. The bounce recaptured less than half the ground lost, which tells us that dominant momentum on the daily chart now tilts firmly in favour of the bears.
It’s worth anchoring a VWAP to the March highs. This gives us a running view of how short-term bullish momentum is faring relative to the longer-term downtrend—and helps frame any intraday strength in the broader context of a weakening trend.
UK100 Daily Candle Chart
Past performance is not a reliable indicator of future results
Sector Snapshot: Rotation to Safety
There’s been a marked shift in sector leadership recently, with risk-on areas falling out of favour and defensives starting to find their feet.
Energy, Healthcare and Materials have led the downside. These are typically sectors that perform when investors are in a more optimistic mood, so the move away from them hints at rising caution across the board.
In contrast, Utilities, Consumer Staples and Real Estate have all shown resilience. As the outlook for rates softens and the broader environment becomes more risk-off, capital is rotating into more stable, yield-oriented sectors—suggesting investors are starting to prioritise defence over growth.
1 Month UK Sector Snapshot
Past performance is not a reliable indicator of future results
Hourly Timeframe: Trading the Inflection Points
Zooming in to the hourly chart, the previous week’s high and low stand out as key levels to work with. They now serve as clear reference points for support and resistance, helping to shape short-term swing setups.
Market harmonics can also offer a useful guide here. Taking the low-to-high move from Wednesday’s recovery and projecting that from Thursday’s swing low creates a potential reversal area. This projection lines up with the anchored VWAP from the daily timeframe, giving us a neat confluence zone where a short-term reversal could take shape.
UK100 Hourly Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Daily Timeframe: Shift in Momentum
The sharp sell-off on Friday 4th April marked a clear turning point in the momentum dynamics for the FTSE 100. The index cut cleanly through its 200-day moving average, and the rebound that followed has been weak in comparison. The bounce recaptured less than half the ground lost, which tells us that dominant momentum on the daily chart now tilts firmly in favour of the bears.
It’s worth anchoring a VWAP to the March highs. This gives us a running view of how short-term bullish momentum is faring relative to the longer-term downtrend—and helps frame any intraday strength in the broader context of a weakening trend.
UK100 Daily Candle Chart
Past performance is not a reliable indicator of future results
Sector Snapshot: Rotation to Safety
There’s been a marked shift in sector leadership recently, with risk-on areas falling out of favour and defensives starting to find their feet.
Energy, Healthcare and Materials have led the downside. These are typically sectors that perform when investors are in a more optimistic mood, so the move away from them hints at rising caution across the board.
In contrast, Utilities, Consumer Staples and Real Estate have all shown resilience. As the outlook for rates softens and the broader environment becomes more risk-off, capital is rotating into more stable, yield-oriented sectors—suggesting investors are starting to prioritise defence over growth.
1 Month UK Sector Snapshot
Past performance is not a reliable indicator of future results
Hourly Timeframe: Trading the Inflection Points
Zooming in to the hourly chart, the previous week’s high and low stand out as key levels to work with. They now serve as clear reference points for support and resistance, helping to shape short-term swing setups.
Market harmonics can also offer a useful guide here. Taking the low-to-high move from Wednesday’s recovery and projecting that from Thursday’s swing low creates a potential reversal area. This projection lines up with the anchored VWAP from the daily timeframe, giving us a neat confluence zone where a short-term reversal could take shape.
UK100 Hourly Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.