It's been a relatively good day for the FTSE 100 Index and related ETFs. FTSE 100 gave up about 1.2% of the initial 2.4% rise today. It still managed to make 1.2% at close. Not bad.
With today's move (daily chart), the bulls took a decisive step but they are not out of the woods just yet in my opinion. Yes, price broke out forcefully through the resistance trendline of a short term symmetrical triangle (7010), then took out the 50 period EMA (7120) initially.
It then went on to reach a high of 7145 before loosing steam and falling back to 7062 at close. This was a large pull back and a ferocious fight back from the bears.
The bulls now need to retest and stay above the 50 period EMA (7120) for this upswing to remain valid. The stop loss will be at the slanting trendline (7000).
Conclusion: The bulls took a bold step with a strong breakout. But the bears are trying to stop them. The next few days will be interesting to watch. However, I would like to declare that I am currently in the long position.
I am a system (algorithm) trader. I trade about 4-6 times a year. My system has indicated going long at market close today. That is trading first thing tomorrow at 9AM. I will do that and remain long unless price breaks down below 7000. Let's see how it goes.
With today's move (daily chart), the bulls took a decisive step but they are not out of the woods just yet in my opinion. Yes, price broke out forcefully through the resistance trendline of a short term symmetrical triangle (7010), then took out the 50 period EMA (7120) initially.
It then went on to reach a high of 7145 before loosing steam and falling back to 7062 at close. This was a large pull back and a ferocious fight back from the bears.
The bulls now need to retest and stay above the 50 period EMA (7120) for this upswing to remain valid. The stop loss will be at the slanting trendline (7000).
Conclusion: The bulls took a bold step with a strong breakout. But the bears are trying to stop them. The next few days will be interesting to watch. However, I would like to declare that I am currently in the long position.
I am a system (algorithm) trader. I trade about 4-6 times a year. My system has indicated going long at market close today. That is trading first thing tomorrow at 9AM. I will do that and remain long unless price breaks down below 7000. Let's see how it goes.