FTSE 100 Hits Record Highs: Key Levels and Market Outlook

The FTSE 100 index has surged to new all-time highs, breaking above key resistance levels and continuing its upward momentum. Currently trading around 8,602, the index has successfully retested support at 8,479, a former resistance level, and has since rebounded.

Can the FTSE 100 Continue Its Uptrend?

With the index at record highs, technical indicators suggest there could be further upside potential. Despite the rally, the FTSE 100 is not yet in extreme overbought territory compared to past corrections, indicating room for more gains.

Traders are eyeing 8,700 and 8,800 as the next psychological resistance levels, where profit-taking could emerge—unless momentum starts to weaken.

Technical Indicators and Market Sentiment

• MACD (Moving Average Convergence Divergence): The MACD has edged lower but appears to be turning upwards again, signalling renewed bullish momentum.
• RSI (Relative Strength Index): The RSI has only just entered overbought territory, but historical trends suggest it can remain elevated for days before a pullback occurs.
• Stochastic Indicator: The stochastic oscillator has yet to enter overbought conditions, leaving more room for further upside.

Key Support Levels to Watch

In case of a pullback, traders may focus on:

• 8,583 – Near-term support level.
• 8,479 – Former resistance, now acting as key support.
• 8,427 – A break below this level could signal a deeper correction.

Market Outlook: What’s Next for the FTSE 100?

As long as technical indicators remain supportive, the FTSE 100 may continue its bullish trend towards new highs. However, traders should monitor resistance levels, profit-taking signals, and potential shifts in momentum for signs of a reversal.