Market Overview: FTSE 100 Futures
FTSE 100 futures went greater with a robust breakout final week. The bears tried to fade the highest of the buying and selling vary however received run over with a weak sign. As quickly because it closed, solely patrons took the value greater. Subsequent week, it is very important see if there’s follow-through on the new ATH.
FTSE 100 Futures
The Weekly FTSE chart
- The FTSE 100 futures final week had a robust breakout to the brand new all-time excessive.
- It was a giant bull bar closing on its excessive, so we’d hole up subsequent week.
- For the bulls, followthrough is vital after a big bar, which tells the distinction between profit-taking and new orders.
- The bears see it as a purchase climax and are searching for a reversal, a failed breakout on the new ATH.
- Final week, we stated the tail beneath was an indication that bears have been getting out of the way in which. They’d limit-orders on the prior excessive and decrease. However they wanted to scale in to keep away from a loss.
- You may argue that due to an open hole, many bears couldn’t cut back their losses. As soon as they exit shopping for again shorts, the bulls purchase, additionally growing the value.
- The bears want a foul FT bar, a bear doji closing on its low, to confuse the bulls extra.
- After a breakout, there needs to be a pullback to begin the channel of a spike and channel.
- Can this be a wedge bear flag, a three-push on the excessive of a buying and selling vary? Nobody will promote low and not using a promote sign, and they’re unlikely to promote the excessive as it’s.
- Restrict order merchants may purchase beneath the lows of the prior bars earlier than the breakout. Betting that the stop-order promote beneath wouldn’t work.
- You may have additionally purchased weak reversal bars on the way in which up.
- All the time in lengthy, so higher to be lengthy or flat.
- Anticipate sideways to up subsequent week.
The Day by day FTSE chart
- The FTSE 100 futures on Friday was a giant bull bar closing on its excessive so we’d hole up on Monday.
- It’s the second consecutive sturdy bull bar, so a bull breakout and follow-through. It’s more likely to get a second leg up.
- The bull channel is tight, so the primary reversal needs to be minor.
- The bears see an increasing triangle, excessive in a buying and selling vary. Increasing triangles can reverse instantly.
- However ETs are normally continuation patterns in sturdy tendencies, and after breakout mode on the month-to-month chart and bulls shopping for the shifting common, it was more likely to get a robust breakout above the ATH.
- All the time in lengthy, so merchants needs to be lengthy or flat.
- Merchants who’re nonetheless lengthy have a large cease right here. Some may need it beneath the double backside with the surface bar, overlapping from two weeks in the past.
- However in a spike and channel, the channel is a magnet. It is likely to be higher to scale in there.
- Are you able to be brief right here? No.
- The bears had an opportunity to promote above the bear tails earlier, however the physique was so small it was not stop-order promote beneath. As soon as they tried 3 times, it appears like they’d given up.
- Bears can argue {that a} wedge prime triggered. However the reversal bar was both too small, or too massive, forcing merchants to commerce it extra like a buying and selling vary.
- The entire vary will possible be used for a measured-move up.
- Anticipate sideways to up subsequent week.
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