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The FTSE’s deeper losses follow last week’s turmoil, raising the question of whether the latest weakness is a natural correction in an uptrend or the start of a larger, deeper reversal.
With the index reaching advanced levels following a strong rally and a fresh weekly reversal signal emerging, this seems appropriate to monitor the price action structure carefully.
With the index reaching advanced levels following a strong rally and a fresh weekly reversal signal emerging, this seems appropriate to monitor the price action structure carefully.
Daily Chart: A deeper pullback forms within the uptrend
The daily chart shows that the uptrend remains structurally sound, but momentum has slowed.
After setting new highs at the beginning of the month, the index fell back to previous support areas, holding above its 50-day simple moving average.
While the correction so far has been orderly, the index is clearly ahead of the medium-term trend at this point, so any further weakness will need to be monitored carefully.
UK100 index daily chart
Past performance is not a reliable indicator of future results
Weekly Chart: Bearish reversal candle raises risk levels
On the weekly frame, the indicator registered a bearish pin bar, which is a signal to watch out for following an extended uptrend.
These candles at the top often signal a shift in investment sentiment, especially after months of steady gains.
While the candle itself does not confirm a reversal, it does indicate that upward momentum has temporarily reached its maximum.
If the daily chart fails to regain broken resistance, weekly signals will become more important in determining the next trend.
UK100 weekly chart
Past performance is not a reliable indicator of future results
Hourly Chart: Key Strategy Test
The hourly chart provides a practical perspective for short-term decision-making.
A clear bearish trendline can be observed guiding the current downward path, consistent with the corrective structure emerging on the daily frame.
Obviously, a break above this line will be the first signal that buyers are trying to regain control and resume the overall uptrend.
However, if the breakout fails and price begins to reverse from the downtrend line, it would indicate that sellers have regained influence over logical technical levels, which could activate a bearish weekly signal.
In this case, traders will focus on the possibility that the index will start making lower highs on the daily frame.
Currently, the FTSE is at a critical crossroads – the overall trend remains intact, but weekly reversal signals are adding to current concerns, while the hourly trendline is the clearest indicator of upcoming market intentions.
Which party takes control will determine the overall direction of the market for the rest of November.
UK100 index hourly chart
Past performance is not a reliable indicator of future results
Disclaimer: This article is for educational purposes only. The information provided does not constitute investment advice and does not take into account any investor’s personal financial situation or objectives. Any information that may be provided regarding past performance is not a reliable indicator of future results or performance.
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