The UK 100 stock index (money) has been trending up since February. However, the index has undergone a small downward correction recently after its accumulation peaked at the 20-month high of 7,400.
This recent retreat is unlikely to last, as the momentum indicators suggest that the bullish forces are still at play. The stochastic oscillator slopes upward near the 80-year overbought area, while the RSI hovers in the positive region.
If the buying pressure intensifies, the immediate obstacle for the bulls could be found at the 7,331 level. If the price crosses over this barricade, then the next challenge could be the 20-month high of 7,400. Failing to stop there, the price rise could stop at the psychological mark of 7,500 or even higher at the February 2020 high of 7,560.
Alternatively, if the bears regain control, initial support could be met at the 7,188 and 7,026 levels, where the 50- and 200-day simple moving averages (SMAs) are found respectively. If the price dips below these levels, then the next hurdle for sellers could be found at the 6,945 region. Breaking this support point, the price would then move to the 6,824 barrier.
Overall, UK 100 has been in a long-term uptrend. Although the index has given up some ground recently, only a clear move below 7 026 could turn the short-term picture back to negative.