The FTSE100 has entered oversold territory on the daily timeframe.

The FTSE has fallen into oversold territory today currently reading 27 on the daily timeframe. As per the graph, the last 5 oversold conditions did result in a bounce of some form. That being said, the index could sit between 7,375 - 7,425 for a few days before a a move either higher or lower. If the Index continues to break down, further support sits at 7,250 which is the July, Aug, and October 2023 lows. A continuation lower from here then aims for 7,200. Towards the upside, initial resistance sits at 7,538 daily swing high. A break above here could indicate a further move towards 7,600. Upside resistance will be tough for the index to surpass, but the intense drops could provide short-term buying opportunities.