FTSE 100
What do I see from the charts..
The FTSE 100 is the highest its been ever. Mainly due to the fact a weaker pound has improved the price competitiveness of our exports which has pushed the ftse over the last two years.
Of course, the main factor of this chart is going to be news on brexit, so concentration on brexit news will be important. The relationship between GBPUSD and the ftse also has some similarities.
Now for the price action and technicals.
FTSE clearly broken down out of a rising wedge. It has retested and rejected of the 21 ema on the weekly time frame, and is struggling to maintain price above the 200 ema on the weekly at 6950.
Personally I have a bearish outlook. It's touched the .382 fib retracement level for this move down and is coming up to the 55 ema on the daily which has confluence with the rising wedge. There is strong support at 6750, but should that break, a deep dive is likely to around 6300. I think there is room to retest the 7500 region, which is the golden fib zone for a retracement. There is also a nasty shooting star, which indicated its heading back down to retest support. The RSI is finding resistance and has just made a nose. I expect it to see 6800 again this week, and should this support not hold and make a triple bottom, we will see more bearish momentum.
Price at 7300 would be good Risk to reward for a short with a stop above the 200ema on the daily, targeting the 6300 zone, which is also the golden fib zone for the move up from 5700 to 7800, providing us with good confluence. Depending on its strength, we may or may not reach 7500 at that blue box, but either way, it's a bearish outlook from me.
The FTSE 100 is the highest its been ever. Mainly due to the fact a weaker pound has improved the price competitiveness of our exports which has pushed the ftse over the last two years.
Of course, the main factor of this chart is going to be news on brexit, so concentration on brexit news will be important. The relationship between GBPUSD and the ftse also has some similarities.
Now for the price action and technicals.
FTSE clearly broken down out of a rising wedge. It has retested and rejected of the 21 ema on the weekly time frame, and is struggling to maintain price above the 200 ema on the weekly at 6950.
Personally I have a bearish outlook. It's touched the .382 fib retracement level for this move down and is coming up to the 55 ema on the daily which has confluence with the rising wedge. There is strong support at 6750, but should that break, a deep dive is likely to around 6300. I think there is room to retest the 7500 region, which is the golden fib zone for a retracement. There is also a nasty shooting star, which indicated its heading back down to retest support. The RSI is finding resistance and has just made a nose. I expect it to see 6800 again this week, and should this support not hold and make a triple bottom, we will see more bearish momentum.
Price at 7300 would be good Risk to reward for a short with a stop above the 200ema on the daily, targeting the 6300 zone, which is also the golden fib zone for the move up from 5700 to 7800, providing us with good confluence. Depending on its strength, we may or may not reach 7500 at that blue box, but either way, it's a bearish outlook from me.
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