Possible short/medium-term Bullish action in UK100

Author: Vin Coco, participant of the Analyst Contest

The index is trying to close today’s action with purchase recovery. Although the medium-term trend is still set to the downside, today’s close seems to confirm a temporary stop, with the possibility of an upward move in the following days.

Elements to be considered for the Trading Forecast (Technical Analysis):


  • Side by side Bullish Candle Pattern, 3 x Bullish Engulfing (green arrows);
  • The Candle Patters is at Multi-tested Turnaround Support (Old Resistance has now became Support);
  • The 6100 Round number is acting as Support;
  • Rising channel/trend line is supporting price (Blue dotted line);
  • Risk:Reward is 2:1 for the 2nd target; (purple arrow on the right);
  • The possible bounce is at about 32.8 Fibo retracement;
  • Stochastic Divergence;
  • The Price has closed above the EMA (green line);
  • SMA 20(blue) and 50 (red) are still set in Bullish configuration;
  • On W chart (Image nr.2) the target converges to the upper side of the Descending Channel (in dotted red) and the Resistance Zone bounded by the blue rectangle.


  • The long term trend has still a negative bias;
  • The price is still in a box range;
  • The worst R:R scenario has only about a 1:1 ratio (leftmost purple arrow);
  • The SMA200 is still above the price and can “compress” it to the downside;
  • The area 6180-6200 (round number) could act as Resistance;
  • On Weekly chart (medium-long term) the SMA 200 and SMA20-50 are set in Bearish Mode.



Any comments and suggestions below are very welcome.

Source:: Possible short/medium-term Bullish action in UK100

About the Author
Alpari was founded in 1998 and is one of the world’s leading Forex brokers, offering clients a full package of the most modern financial instruments and technological solutions for online trading and investment. According to data from Finance Magnates, Alpari has been one of the largest Forex brokers in the world for a number of years. The trading turnover of the Alpari companies in 2014 was 2.5 trillion USD. Today Alpari is the world’s largest MetaTrader 4 Forex broker. The first half of 2015 saw company branches offering their services to over one million clients from over 150 countries in the world. Alpari clients have access to over 50 currency pairs and an extensive range of other instruments. The company offers the use of three trading platforms for computer and mobile applications for use with iOS and Android. Alpari is a member of international organizations such as The Financial Commission (Hong Kong) and CRFIN (Russia). Bonuses: the Alpari Bonus Program was launched in 2014 and allows clients to independently change their conditions for working on the financial market: reduce commission, save money on swaps, improve conversion rates and much more. Read More about Alpari HERE or you can visit their website direct by CLICKING HERE..

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