The UK 100 stock index (FTSE 100) has been trading slightly higher following the rebound on the 7473 support level. The stochastic oscillator confirms this short-term upside view, as it is heading north above the oversold territory. Also, the RSI is pointing up in the positive area.
If the price manages to extend the bullish action and successfully surpass the eleven-month high, resistance would come from the 7790 barrier, taken from the high on August 2018. Further up, the index could rest around the 7900 resistance area, identified by the peak on May 2018.
However, in case of a bearish correction, the market might revisit the 7473 support before resting near the 50-day simple moving average currently at 7400. More losses could push the price until the 23.6% Fibonacci level of the upleg from 6533 to 7622 around 7365.
Overall, a jump above the recent multi-month high could confirm the near-term bullish tendency in the daily chart, but if there is a penetration of the uptrend line, it could shift the outlook to neutral.
