The FTSE 100 tested the trendline resistance of 7,747 on Friday but failed to overcome it. The RSI now indicates signs of overbought conditions.

The FTSE 100 index is currently trading at around 7,702. If we look at the chart from a technical perspective, we can see that on the daily timeframe, the price tried to break through the resistance of 7,747 but failed on Friday. Looking at the candlestick it was clearly too challenging for the index, especially prior to the UK CPI and interest rate decision in the upcoming days. This resistance dates back to the 16^th of February, which we can now see was the starting point of the downtrend. This resistance corresponds with the descending upper trendline which highlights the bearish ongoing trend (yellow oval). A break above the upper trendline could be an indication that we have begun a new bull trend. But until then, the bias remains bearish. Towards the downside, we can see a support base has been formed along the lower trendline, with the lowest reading of 7,203. The index came close to testing this support on two different occasions but managed to close higher, these are highlighted by the green ovals. Another retracement back to those levels could be a signal that the FTSE is struggling to gain enough momentum to break higher. In that scenario, a potential exhaustion may lead to a break below 7,203. Looking at the technical indicators, MACD and the RSI are still positive with the RSI reading 73. However, the RSI does suggest that the index is overbought. Hence, we could see a pullback over the next couple of days.