FTSE 100: A Trip Through the Timeframes
The FTSE 100 finds itself at a key crossroads, trading at a major level of support that resonates across multiple timeframes. For traders and investors alike, this is one of those moments where the charts tell a story worth reading - let’s dive in and unpack the patterns shaping the FTSE’s current setup.
Weekly Timeframe
The weekly timeframe is an excellent starting point for any multi-timeframe analysis, offering a macro perspective on the FTSE 100. Here, the index remains in a long-term uptrend but is currently consolidating. Recent price action has brought the market back to a pivotal zone: the broken 2023 highs. These highs, which transitioned into support during the summer pullback, are now being tested once again.
This area is a litmus test for the FTSE’s resilience. If support holds, it could pave the way for another leg higher in the long-term trend. However, a breakdown could signal a deeper retracement and a potential shift in sentiment.
FTSE 100 Weekly Candle Chart
Daily Timeframe
Zooming into the daily chart, the nuances of the support zone come into sharper focus. The index’s response to the U.S. election was dramatic, creating a long-tailed bearish fakeout candle—a false breakout that reversed sharply on elevated volume. This move dragged the FTSE below its 200-day moving average for the first time since February, adding to bearish concerns.
FTSE 100 Daily Candle Chart
Past performance is not a reliable indicator of future results
Four-Hour Timeframe
On the four-hour chart, the first signs of optimism emerge. At the support zone, the market has carved out a small, inverted head and shoulders pattern—a classic reversal structure often signalling the end of a downtrend. This pattern indicates that buyers are starting to gain confidence, even if only tentatively.
FTSE 100 Four-Hour Candle Chart
Past performance is not a reliable indicator of future results
Hourly Timeframe
Finally, the hourly chart brings us to the granular details of the ongoing battle. As the new trading week kicks off, the FTSE is tightly compressed between a minor ascending trendline and a horizontal resistance level. This tug-of-war reflects the intensity of the market’s indecision near the key support zone visible across all timeframes.
This compression phase typically precedes a breakout. If the FTSE manages to clear the resistance, it could act as the catalyst for a broader recovery, with ripple effects across higher timeframes. Conversely, a breakdown below the ascending trendline might reignite selling pressure, threatening the structural support zone.
How this small hourly pattern resolves will likely set the tone for the week ahead and potentially influence the FTSE’s trajectory on higher timeframes.
FTSE 100 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.
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