Overbought RSI Warning
The current analysis of UK100 indicates that the price line has started a bullish trend following a sharp bearish wave. However, the RSI is in the overbought zone, indicating that the market may be due for a correction. Furthermore, the MA of 90 has broken below the MA of 9, suggesting a bearish momentum in the short term.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Despite these potential indicators of bearish sentiment, the price line is expected to continue ascending until it reaches the resistance level at around 7900, as indicated by the light red box. This level has previously acted as a strong resistance level in the past and may cause the price to consolidate or retrace. As a result, a bearish wave may follow if the resistance level proves to be too strong for the bulls to overcome. Traders and investors should keep a close eye on the price movements of UK100, particularly around the resistance level, and consider implementing appropriate risk management strategies to mitigate potential losses.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.