FTSE 100 is reading 76 on the weekly RSI timeframe. the last time the index was this overbought was 2006.

The FTSE100 is currently reading 76 on the weekly timeframe and 79 on the daily timeframe. Looking back at the chart, the last time the FTSE was this overbought was in 2006, however, the index did continue to push higher before the 2007-2008 crisis saw the index drop significantly. Looking at the daily timeframe the RSI is also very high suggesting overbought conditions. this has happened 7 times since 2023 (excluding the current upside move) and each time has resulted in the index eventually falling before moving higher or staying rangebound.

Looking at the current chart, the FTSE has a tough resistance at 8,500, with a break above this possibly opening the door to 9,000. The FTSE has lagged behind the rest of the year for some years now and could be playing catchup as a high-interest rate environment sees banks perform better and companies with large cash holdings too, of which the FTSE has many constituents in which do.

Towards the downside support for the index initially is around 8,200 with a break below their targetting 8,000. It is also worth noting that MACD is positive, but momentum is slowing and it could likely turn negative this week if the market can't continue to break out higher.