ReadySetBudget

FTSE 100 Combining Fibonacci Retracements and Ichimoku's Cloud

Long
TVC:UKX   UK 100 Index
In this analysis we're looking at the FTSE 100 1-yr trend. I'm really looking more to see if there's any efficacy analyzing a trend using Fibonacci retracements and Ichimoku's Cloud. It looks like the there's a resistance (and a possible support) at 7,527.3, the first Fibonacci level, the evidence of which is in the middle of august, just before October, and one at the beginning of December last year. With that in mind, there's a point in the area of forecasting, after the latest price, where the the first Fibonacci level meets the Ichimoku resistance cloud which I anticipate the recent trend will trace back but bounce of at that point demarcated by the rectangle. The RSI supports the change in momentum of the index BUT looking at how quickly it's dropping it's going reach the 'oversold' level right about when I'm anticipating the index will turn back up. Lastly, we are looking at the point where there's a cross over of the signal line over the MACD further supporting the retracement. Given everything that's going in Italy there's externalites that confirm that this might happen but once everything settles down there's a good chance that the FTSE 100 will continue it's new upswing. From a trading perspective I'd anticipate that crossover and for evidence that the retracement is over and get in at the bottom if the evidence supports.

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