The FTSE 100 is starting to challenge towards the psychological 6,000 level as positive market sentiment continues to lift global indices.
UK 100 analysis shows that the index could be preparing to test towards the 6,130 resistance level over the medium term.
FTSE 100 medium-term price trend
The FTSE 100 is increasingly well-supported on price dips, placing the 6,000 resistance level back in focus.
FTSE 100 technical analysis shows that the index is trading in the middle of a falling price channel between the 5,730 and 6,130 levels. Typically, falling price channels are considered to be bullish reversal patterns. This increases the chances that the index may rally towards the top of the price channel.
Technical analysis highlights the index’s 200-day moving average, around 6,300, as a potential upside target above the price channel.
According to the size of the falling price channel, the FTSE 100 could rally towards 6,500 over the medium-term.
FTSE 100 short-term price trend
FTSE technical analysis over the short term shows that the index has a short-term bullish bias while the price trades above 5,950.
The four-hour time frame is showing that a bullish breakout from a descending triangle pattern has taken place. Technical analysis shows that the bullish breakout remains valid while the price trades above 5,880.
According to the size of the descending price pattern, the FTSE 100 could rally towards 6,130 over the short term.
FTSE 100 technical summary
UK 100 analysis shows that the index is trapped inside a falling price channel and could soon test towards 6,130.