Market Overview: FTSE 100 Futures
FTSE 100 futures went greater final month with a Excessive 3, a wedge bull flag proper above the transferring common. Breakout mode lasted for a very long time so merchants need the market to maneuver rapidly to targets. However in a buying and selling vary the pullbacks are deep so count on extra sideways nonetheless. Robust purchase sign right here in a broad bull channel so ought to get comply with by. Some merchants will anticipate the pullback into the bar earlier than scaling into longs.
FTSE 100 Futures
The Month-to-month FTSE chart
- The FTSE 100 futures went greater with a bull breakout and pullback from a bull flag, a Excessive 3.
- The upper time-frame bulls see two clear legs up from the COVID crash and the previous 12 months as the two legged pullback from the tip of the second leg.
- This push up would make leg 3 and may flip sideways right into a buying and selling vary.
- Typically the ultimate leg in a transfer is a parabolic wedge, so a PWT right here.
- There’s a measured transfer above the prior excessive which is the place we is perhaps heading.
- The bears see a buying and selling vary and a failed breakout above the excessive. There are lots of sideways bars and so they retraced greater than 50% of the prior leg.
- They’ll doubtless promote above the highs and scale in greater.
- However now we’re above each transferring averages it’s higher to be lengthy or flag.
- Robust purchase sign proper above the transferring common in a bull pattern so it’s a purchase the shut and purchase above commerce.
- What’s the expectation? No two consecutive bull bars in a very long time so prone to pullback subsequent bar.
- If we break strongly to the upside that might be extra of a shock and a second leg extra doubtless.
- Some bulls will anticipate a pullback into the purchase zone earlier than coming into. You are able to do this on many indicators together with the Excessive 3.
- This technique reduces danger however the associated fee is lacking 20-30% of trades.
- March and April are usually fairly bullish.
- All the time in lengthy so count on sideways to up subsequent month.
The Weekly FTSE chart
- The FTSE 100 futures went above final weeks excessive however didn’t shut above it so extra sideways.
- Bulls see a breakout and comply with by after an enormous bull spike. They need 2 legs up, perhaps three in a spike and channel bull pattern.
- Bears see a purchase climax with unhealthy comply with by excessive in a buying and selling vary after breakout mode.
- Every time the market does one thing to make you consider there may be readability, you must assume it’s going to pullback quickly.
- There should all the time be two cheap reverse trades. In any other case the market rushes again to assist or resistance.
- Very clearly all the time in lengthy right here, however how come nobody purchased final week?
- Huge bull spike so chance is excessive which means danger reward is unhealthy. Bears can quick up right here with a small cease and a 40% chance of constructing 2:1.
- Bears had 3 good bear bars and would have shorted above it. So they’re caught. Some would have exited and a few others could be scaling in. Most merchants mustn’t do that. The losses might be too giant to have an inexpensive fairness curve.
- Bears might argue 3 legs up from January. However the final one broke strongly above the prior swing level.
- Broad bull channel on the upper time-frame so deeper pullbacks are to be anticipated. Merchants ought to commerce a smaller measurement and look to scale in decrease than they want.
- If you happen to look left, the pullbacks have been 60%+ so we might pullback to the breakout level.
- Though I believe we’ll keep above that now the month-to-month is a robust purchase sign.
- All the time in lengthy so it’s higher to be lengthy or flat.
- Anticipate sideways to up subsequent week.
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