The descending trend line drawn from Oct 11 high and Nov 10 high currently stands at 6900. It needs to be breached if the bulls intend to push the index back to record highs above 7K levels.
However, Wednesday’s candle with long upper shadow suggests adds credence to the falling tops formation and opens doors for a drop to 6700 levels.
On the downside, only a...
Entering short is possible from 6850 resistance area or after hourly close below red trendline at S2 level 6800. The following support zones for the index are 6770 and 6740 (as described in 4H chart).
Once FTSE 100 falls below 6740, we'll have extra short potential down to 6660.
On the daily chart, the head and shoulder neckline is seen at 6685 levels.
A rising bottom formation has been seen since November 9.
Still, the bulls are likely to remain on the sidelines so long as the descending trend line drawn from Oct 11 high and Nov 10 high is intact.
Meanwhile, the bears await a breach of the head and shoulder neckline.
FTSE 100 index faded spike to 6880 and ended the day largely unchanged on the day at 6817.
The Wednesday’s candle is a Doji.
The retreat from 6880 also ensured the sideways channel on the hourly chart remained intact.
Once again, we await a convincing breakout. The daily MACD has turned positive and a back to back daily close above 6800 means the increased...
Failure to take out 5-DMA, 10-DMA and 100-DMA for three straight sessions (including today) has opened doors for a drop to head and shoulder neckline seen around 6685 levels.
A daily close below 6685 today or during the rest of the week would signal long-term bullish trend reversal, given the pattern has developed at records highs.
On the higher side, only a...
The index failed to sustain above 100-DMA level of 6801, which leaves the doors open for a drop to head and shoulder neckline of 6680.
A daily close below 6680 would signal a major trend reversal, given the pattern has appeared at record highs.
Comments – The 4-hour chart shows head and shoulder with the neckline support of 6680. Watch out for a daily close below the same as it would signal trend reversal… given the pattern has been formed at record highs.
Daily head and shoulders forming - expecting a rally to 6950 to form the right shoulder.
Short 6950 Stop (Over Head) 7135 Target 6200
TECHNICAL:
- Head and Shoulders (LS and Head formed)
- Rising Neckline
- Expecting a rally to 6950 in line with (LS)
- A rally to 6950 would also coincide with a 61.80% retracement of the Nov 4th low.
- Anticipate the 20MA moving...
This market is still in a technical uptrend although signs are beginning to emerge that we may be falling off, but the confirmation will come if the 6700 level is broken to the downside. In terms of indicators the RSI has moved into bearish territory but is producing a bullish failure swing. On the monthly timeframe the candlestick action is very bearish but...
Support
6809.5 (Sep 30 low)
6745 (23.6% of Feb low - Oct high + 100-DMA)
6654.5 (Sep 12 low)
Resistance
6900 (200-DMA)
6937.5 (Oct 17 low)
6955.3 (Aug 15 high)
Comments - Pair’s bearish close at 6854 coupled with RSI at 40… pointing lower suggests the doors have been opened for a further slide to 6745 (23.6% of Feb low - Oct high). A minor corrective due...
The footsie had formed a 'time at mode' signal on the daily chart which has already hit the projected target. Since it only has one day left (Time at mode signals project a price target and a time duration for the possible rally), we can go short if we get a new daily low, with stops above today's high, tomorrow.
Good luck!
Ivan Labrie.
Despite Thursday’s rebound from 6924 levels, it is too early to call the index is heading to fresh record highs, given the daily close was below 7000 levels.
A positive follow through today with a daily close above 7K would signal a possible move to 7055-7100 levels.
On the other had hand, bears are waiting for a daily close below 6950 levels. In this case,...
Tuesday’s rebound from the rising trend line support followed by two-day winning streak and move to 7040 levels today suggests bulls have regained control, still the journey to fresh record highs needs a daily close above 7055 (Oct 14 high).
On the lower side, only a daily close today below 7000 levels would open doors for a re-test of rising trend line support...
this channel contains an Elliott wave in five waves and the recent high is the top of wave 4. If however wave 4 takes the shape of a triangle, the recent high is wave (a) inside wave 4. In this scenario the FTSE will bounce back to the upper line as the current decline is wave (b) and the bounce will be wave (c). A break above the upper line ans above 6765 would...
