FTSE 100 prediction: Index eyes 10,897 resistance with bullish bias intact

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FTSE 100 up 1.81% at 10,843 today

Highlights

UK stocks rebounded as completion of the U.S. midterm elections reduced political uncertainty and improved demand for major FTSE 100 constituents.
Recent volatility was influenced by a global technology stock sell-off and profit contraction at Associated British Foods.
Technical signals indicate a bullish trend across timeframes with an expected range of 10,655 to 10,897 and a 76% probability of an upside move.

Investor confidence rebounds as post-election clarity boosts financial stocks

UK stocks have rebounded following the completion of the U.S. midterm elections, with financial sector constituents of the FTSE 100 benefitting from the improved post-election environment, according to Bloomberg. This reduction in political uncertainty has fueled stronger demand for major index members and lifted overall investor sentiment. Recently, the index faced headwinds from a global technology sell-off and a profit contraction at Associated British Foods, as reported by Yahoo Finance, contributing to volatility but ultimately giving way to renewed buying interest.

Bullish momentum persists amid overbought risks and strong buy-side activity

On the H1 timeframe, the price remains above the MA-20 and MA-50, and on the daily chart it is also above the MA-200, confirming a bullish alignment across all key periods. The Ichimoku Kijun level at 10,720 is acting as immediate support. Among momentum indicators, MACD is neutral, ADX signals sustained buy-side strength, and RSI is currently neutral. However, Stochastic RSI and CCI are both registering in overbought territory, indicating a short-term overheating risk. Bull/Bear Power is strongly positive and the Awesome Oscillator shows robust buy support, reflecting active participation by buyers throughout the session. Although momentum is strong, the combination of overbought oscillators suggests the potential for a near-term corrective move.

Upside scenario favored as consolidation and breakout levels approach

Over the next two to three sessions, the expected price range is between 10,655 and 10,897 — a typical volatility band relative to current levels. Upside continuation is favored with a 76% probability, while downside moves are less likely at 24%. The baseline scenario is for sideways consolidation within this range. A confirmed breakout above 10,897 would signal further upside momentum, whereas a drop below 10,655 would indicate a bearish reversal.

Viktoras Karapetjanc, expert at Traders Union, views the FTSE 100's advance as a strong show of resilience driven by improved global sentiment after the U.S. midterm elections. He believes that reduced political uncertainty and robust demand for financial stocks are reinforcing positive momentum in UK indices. Short-term technicals look bullish, but some indicators warn of possible near-term overheating. Karapetjanc remains confident in continued upside, provided key support levels hold. "With supportive macro drivers and sentiment tailwinds, I expect further gains if the index stays above 10,720 in the coming sessions."

Earlier, analysts noted that UK equities were under pressure from heightened inflation and policy uncertainty ahead of central bank decisions and the U.S. midterm elections. The current rebound in the FTSE 100 following reduced political risk signals a shift toward bullish dominance, with traders advised to monitor 10,897 as a key breakout level for further upside momentum.

Source of Data: UKX Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.