Price is below the daily 200 moving average
Price has used a previous as resistance
A break and close below the next will confirm a lower high (which is a sign of a downtrend)
These 3 facts do not give us confidence that we are still in an uptrend but it is still too early to call a bear market.
The reason it is too early is because price is still above the weekly chart 200 moving average but do remember that the weekly
chart will lag behind due to the fact that it is a larger timeframe.
The reason for highlighting a possible bear market is so that we can position ourselves to be ready should such an event take place.
As trend traders we want to be ready for all market conditions whether it be a bull market, bear market or a consolidating market.
Right now let's see how the next few days end in the markets and decide on the next move.
Just looking at individual UK stocks there are not many breakouts which reflects on what the FTSE_100 is doing.
We will take a loot at the FTSE_100 in the coming days to review our position in the markets.
Any questions or comments,
do not hesitate to leave them below.
All markets seemed to have had a last hurrah at the year end. Without that, we would be much further along. Thanks to that however, we now have more of a megaphone.
Quite a lot of air before some more solid support.
Could the FTSE have been more of a seer than an alleged under-performing index?
If price breaks the support and closes below it for several days then we can expect a bearish market.