A long position has been initiated on UK100 (FTSE 100) from the 78.6% Fibonacci retracement zone, aligned with the higher timeframe (1D) bullish structure.
On the 4-hour timeframe, price shows signs of stabilization and potential reversal after completing a deep pullback. The entry is based on the confluence of:
Strong Fibonacci support (78.6%)
Holding above the key structural low
Early signs of bullish reaction / demand
Trade Idea:
Entry: From 78.6% retracement zone
Bias: Bullish continuation
Target: Previous swing high (0% Fibonacci level)
Invalidation: Break below recent structure low
While momentum remains slightly weak, this setup offers a favorable risk-to-reward opportunity, provided price confirms continuation with bullish structure on lower timeframes.
Conclusion:
This is a counter-momentum but structure-based buy, aiming to capture a continuation of the broader uptrend from a high-probability retracement zone.