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FTSE 100, Candlestick Analysis

1/4/2023 10:38 AM

FTSE 100, H4

On the four-hour chart, in the area of 7562.3, there is a formation of a Hanging Man reversal candlestick analysis pattern, which traditionally characterizes a change in the balance of power towards sellers, which, however, can also indicate the opposite, since the figure is formed in the area of high prices in a "bullish" market. Traders should wait for additional signals from technical indicators to open trades, as there is currently no confirmation of a trend change by other candlestick patterns, but, most likely, the asset’s quotes may move back against the backdrop of a collision with the resistance level of 7628.8. The signal for a reversal may be the overcoming of the support level of 7496.3, and then the price may drop to the area of 7361.9−7195.3. An alternative scenario is possible in case of overcoming the resistance level of 7628.8, after which the upward dynamics can continue up to the levels of 7754.1−7902.5.

FTSE 100, D1

On the daily chart, there is a formation of a Double Top reversal pattern, warning traders about the upcoming decline in the asset. This scenario also reinforces the appearance of the "bearish" Engulfing pattern, which included the Hanging Man pattern at the level of 7496.3. If the price rebounds from the resistance level 7628.8 and successfully consolidates below the support level 7496.3, the negative dynamics may intensify up to the level of 7195.3.

Support levels: 7496.3, 7361.9, 7195.3. | Resistance levels: 7628.8, 7754.1, 7902.5.

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