UK100 has been consolidating just below its recent high after a strong bullish recovery from the March 2025 plunge. The latest weekly candle shows indecision, suggesting possible exhaustion as price tests resistance while bulls struggle to maintain momentum.

The index closed the week at 8786.45, forming a small-bodied candle right below the 8841.42 resistance zone. Price remains above the middle Bollinger Band and the 20-week EMA, maintaining the medium-term bullish structure. However, the upward momentum has been weakening over the past few weeks.

Bulls Power (13) indicator registers at 130.87, still in positive territory but much lower than recent peaks, highlighting declining bullish strength. Volatility is contracting and volume has been muted, signaling the potential for a breakout or deeper consolidation.

Market Observation & Strategy Advice:
1. Current position: 8786.45, consolidating just below the key 8841.42 resistance.
2. Resistance: 8841.42, recent swing high and clear rejection zone.
3. Support: 8395.41, aligning with Bollinger midline and previous breakout level.
4. Bulls Power shows diminishing momentum, suggesting weakening buying pressure.
5. Trading Strategy Suggestions:

• Bullish breakout: Watch for a strong close above 8841.42 with volume to confirm continuation toward 8950+.
• Pullback scenario: If price fails to break resistance, expect pullback toward 8400–8500 zone for re-entry opportunity.
• Sideways range: Prepare for range-bound trading while price stays capped below resistance with weakening bullish drive.

   

Market Performance:
Index             Last Price      % Change
S&P 500         6,198.01           -0.11%
Dow Jones    44,494.94      +0.91%

Today’s Key Economic Calendar:
EU: ECB Forum on Central Banking
AU: Retail Sales MoM
US: MBA 30-Year Mortgage Rate