FTSE 100 Index UK100
Since making a seasonal high on 22nd May FTSE has fallen away down a narrow impulse
wave and chanelled down the smaller falling pair of parallels from the new high.
Whist constrained within the channel FTSE remains vulnerable to further selling pressure
back to the first minor support line at 7691. Failure to hold here will trigger a shorting
opportuninty back to the 7600-75832 range where it should attempt to bounce away to
the upside again. Looking beyond that bounce, should 7580 fail further out in time FTSE
will likely fall away much further over the summer, to a new downside target in the
7335-7294 range.
Returning to the upside FTSE has to break back above the upper parallel carrying the
current down-wave for the bears to back off again now - it can do this, but only if 7691
holds up on London open. This level looks key to the near term.
It must hold here and bounce up through the upper falling parallel and then hold up on
the restest once it is broken above - if we see this kind of price action soon after the
open can look to get long with stops under the 7690 level, but still ready to reverse
again short if the stop is broken by 10 or more points.
Since making a seasonal high on 22nd May FTSE has fallen away down a narrow impulse
wave and chanelled down the smaller falling pair of parallels from the new high.
Whist constrained within the channel FTSE remains vulnerable to further selling pressure
back to the first minor support line at 7691. Failure to hold here will trigger a shorting
opportuninty back to the 7600-75832 range where it should attempt to bounce away to
the upside again. Looking beyond that bounce, should 7580 fail further out in time FTSE
will likely fall away much further over the summer, to a new downside target in the
7335-7294 range.
Returning to the upside FTSE has to break back above the upper parallel carrying the
current down-wave for the bears to back off again now - it can do this, but only if 7691
holds up on London open. This level looks key to the near term.
It must hold here and bounce up through the upper falling parallel and then hold up on
the restest once it is broken above - if we see this kind of price action soon after the
open can look to get long with stops under the 7690 level, but still ready to reverse
again short if the stop is broken by 10 or more points.
Now testingth enext crucial near term support at 7600-7582.
Can close out now for 91 points profit but be ready to shoe=rt again once 7582 gives way with stops above 7600.