FTSE INTRADAY bearish oversold bounce backThe FTSE 100 index is currently exhibiting a bearish sentiment, as evidenced by the prevailing downtrend. The primary focus remains on the key resistance level at 8638, which corresponds to the current intraday swing high and the falling resistance trendline. This level is critical as it determines the next directional move of the index.
From the current levels, an oversold rally could potentially emerge, leading to a retest of the 8638 resistance. A bearish rejection from this level would reinforce the downtrend, paving the way for a move towards the 8520 support. Further downside momentum could extend losses to the next support levels at 8476 and 8327 over a longer timeframe.
On the other hand, a confirmed breakout above 8638 on a daily closing basis would invalidate the bearish outlook. In such a scenario, the index is likely to experience renewed buying interest, targeting the next resistance at 8693, followed by a potential rally towards the 8760 level.
Conclusion:
The overall sentiment for the FTSE 100 remains bearish unless a decisive breakout above the 8638 resistance occurs. Traders should monitor price action around this critical level for confirmation of either a continuation of the downtrend or a potential bullish reversal.
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