Discouragingly, the 20- and 50-day simple moving averages (SMAs) have already posted a bearish cross, promoting the case of a bearish continuation. In addition to this, the RSI is currently losing ground below its 50 neutral mark and the MACD is diminishing below its zero and signal lines, both reflecting a clear bearish bias.

A step below the base of 8,110 could dampen market sentiment, but traders may not rush to sell the index until the price drops decisively below the ascending trendline at 8,055. Note that the stochastic oscillator is already within the oversold region, while the price itself is hovering near the lower Bollinger band. Hence, a pause in the ongoing bearish phase is likely. Yet, if the bears claim the 8,055 area, the next stop could be around April’s constraining region of 7,987, a break of which could cause a sharper downfall towards the 7,870 zone.

On the upside, the bulls must exit the triangle and knock down the wall at 8,300 in order to boost buying appetite towards the 8,360-8,400 barrier, but before that, they should first claim the  20- and 50-day SMAs at 8,212 and 8,245 respectively. Long-term traders might wait for a bullish trend extension above the crucial resistance line at 8,522 before driving towards the 8,600 psychological mark.

In summary, the UK 100 stock index is holding a bearish bias in the short-term picture, but selling interest could stay balanced until the price slides below 8,055.