FTSE100- RSI isn't the holy grail of markets
Perma bears and Doom sellers are always looking out for reason to call a crash. One such argument making noise is about the daily RSI on the Footsie chart hitting the overbought region (above 70.00) for the first time in three and a half years. This is being sold by many as an advance warning of an impending crash.
Francis Hunt from Market Sniper was on our Finance show squashing squashes the fear mongering via his pointed and precise technical arguments. Hunt says the RSI is lagging indicator and being above 70.00 is merely a sign of exhaustion and at the most an indication of a healthy correction.
Check out the video here - www.tiptv.co.uk/ -
He correctly points out that multiple timeframes have to be studied and a sensational forecast like calling a crash cannot or should be made on the basis of daily RSI. Hunt goes on to detail the developments in the multiple Footsie timeframes.
What we can conclude is that there is little substance in the scare mongering and that FTSE100 could be in for nothing more than a healthy pull back.
Francis Hunt from Market Sniper was on our Finance show squashing squashes the fear mongering via his pointed and precise technical arguments. Hunt says the RSI is lagging indicator and being above 70.00 is merely a sign of exhaustion and at the most an indication of a healthy correction.
Check out the video here - www.tiptv.co.uk/ -
He correctly points out that multiple timeframes have to be studied and a sensational forecast like calling a crash cannot or should be made on the basis of daily RSI. Hunt goes on to detail the developments in the multiple Footsie timeframes.
What we can conclude is that there is little substance in the scare mongering and that FTSE100 could be in for nothing more than a healthy pull back.
