FTSE 100 Pullback Sparks Big Test – Will Bulls Defend the Uptrend?
The FTSE 100 remains technically bullish even as price action undergoes a visible pullback. The index is currently retracing toward the lower boundary of its ascending price channel, testing trendline support after last week’s sell-off.
- FTSE 100 is correcting but still trading inside its uptrend channel, meaning the broader bullish structure remains intact.
- Price is sitting on a major trendline support; a break could open downside targets at 9,300 and 9,100.
- RSI is approaching exhaustion territory, suggesting sellers may soon lose momentum, but no buyer confirmation yet.
Despite the red candles, the broader structure does not signal a bearish reversal at this stage – the correction is still taking place inside the channel, which suggests buyers remain active on higher timeframes.
Technical Setup – Bulls Still in Control, But Pressure Growing
The lower boundary of the uptrend channel has become a key battleground. Price is now sitting directly on that support zone, a level that attracted heavy buying interest multiple times since August. Volume remains controlled, with no signs of panic liquidation, hinting that sellers may be losing momentum and buyers could step in again at this level.
If the lower trendline fails to hold, the next strong horizontal support is located around 9,300. Below that, a deeper correction could drag the FTSE 100 toward 9,100 – a level that historically attracts institutional demand.
Meanwhile, RSI remains above oversold territory. With a reading still above the 30-35 exhaustion band, sellers technically retain control for now. However, momentum is rapidly approaching levels where historical rebounds have taken place, increasing the probability of bullish entries once signs of stabilization appear. For the moment, no confirmation signal from buyers has formed.
Macro Tailwinds and Headwinds Create a Mixed Picture
Positive sentiment from overseas helped support global markets earlier this week. Nvidia’s blockbuster earnings sent U.S. tech stocks higher and boosted risk appetite, and the latest U.S. jobs report showed continued economic strength, temporarily lifting optimism across equities.
However, good macro news came with a negative surprise: the probability of a Federal Reserve rate cut in December dropped sharply. Markets are now pricing in a longer wait before monetary easing begins. That shift immediately cooled risk sentiment on Wall Street and may have spillover effects on European indexes, including the FTSE 100.
What Comes Next
In the short term, everything hinges on whether the FTSE 100 can defend its channel support. A technical rebound at current levels would keep the broader uptrend intact and could open the door for a fresh attempt at the 9,800 region. If the support breaks decisively, the correction is likely to extend toward 9,300, with 9,100 acting as the final major line of defense for bulls.
For now, the market remains technically bullish – but increasingly fragile. Buyers will need to show up quickly to prevent the correction from transforming into a full-scale trend reversal.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
