The UK 100 cash index is pushing efforts to extend buying pressure above the 23.6% Fibonacci retracement level of the up leg from 5,639 to 6,510 at 6310, having climbed above the bullish crossover within the 20- and 40-period simple moving averages (SMAs). The MACD is ready to stretch to the upside, while the stochastic oscillator is heading up towards the overbought region.
A successful break above the 23.6% Fibo could open the way towards the three-month peak of 6,510 before the 6,760 barrier, taken from the high on January 2019, comes into view. Higher, the 6,892 hurdle registered on March 4 could be the next target.
In the negative scenario of a downside reversal, immediate support could appear near the 20-period SMA currently at 6,241. More declines could pause near the 6,175 line, where the 40-period SMA overlaps with the 38.2% Fibonacci, while lower, the focus could shift to the 50.0% Fibonacci of 6,074.
Summarizing, the UK 100 index is in a sideways move in the very short-term but holds bullish in the bigger picture.
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