Followers of my feed will know that I've been short balanced for the last week and half (ish), so this is a longer term chart illustrating the confluences that appear at major tops and the rough correction we should see.
The initial breakout here was actually earlier in 2017, but now that the upper diagonal (that was acting like a price ceiling) has been taken out, I think we could be due a bull run here.
On this rare occasion I also have fundamental research notes too:
With Trump set to give a speech today (Wednesday) I have marked this as a neutral trade, because I think that the contents of his speech will be the likely cause of a breakout in either direction.
A live video feed of the speech and a quick finger are probably the safest way to make a trade here, or you could take a position either way with a stop placed just...
The multidiagonal lines currently suggest that COB will be a good buy in early April.
If I remember to I will post some more detailed charts closer to the time to try and pin down a more specific date for the move.
FRES looks to be ion a longer term pattern that suggests that we should be looking to see a move back into the low £20.00 on a longer term field.
I would be a buyer of pull backs here and want to watch for multidigonal patterns on the precious metals and indices to look for shorter term trading opportunities within this implied bull run.
Expect a decent move at the confluence here. My natural bias at the moment would be for a break to the downside, but emotionally i would say that, as I am currently net short the wider markets.
Use a tight stop though as there could be a bounce at this confluence too.
It's difficult to say in what direction this multidiagonal pattern ought to break out in, due to the flatter price action (at a guess I would TENTATIVELY say upwards, but be prepared with a hedge or stop).
A nice multidiagonal short set up is forming on the lower timeframe charts of the USDX around the 12625 level. We can expect this to feed through into other multidiagonal longer term trades on metals such as gold, which could see a bounce on a USD fall at the confluence in this chart.
It looks to me like a potential short is setting up here on Wolseley. It currently looks like there's still possibly upside to around the £50.00 mark, but that otherwise the set up is mainly short.
With indices looking near tops, I suspect that theres a good chance that the £50.00 level won't be hit - a fall below the lower diagonal could suggest a good short...
Around this upper trend line GKN looks like a short back to as low as the lower trend line. Be aware that the lack of a retest of the lowest trend line on its previous drop suggest that it could be worth taking money off earlier here rather than later.
I like how this is timing well for a short with the FTSE 100 and other indices, which appear to be due a...
Expect a strong pull back here or just above in Elementis PLC, the smaller confluence of multidiagonal lines suggests that for the time being the stock is topping out and this view would be corroborated by similar patterns on the wider global indices.
A potential long trade appears to be setting up on Britvic, with a confluence of multidiagonals in mid April.
A drop below the lowest diagonal would make me re consider the trade, but until late March/early April this is one to watch.
Entering a short position in the FTSE 100 at these levels seems like a good risk vs reward trade at what currently appears to be a long term Multidiagonal top.
This also aligns with bullish Multidiagonal patterns in gold, corroborating the reasons to be short around this 7100-7150 level.
Looking at the current confluence on the chart, it looks to me like we won't come out of the current down move until mid April. This being said, I suspect that we could see a bounce from the bottom diagonal and thus I would be a buyer pre-April if we saw a drop to that diagonal (currently ~ 14p).
There's a strong confluence of multidiagonals coming up for late 2016 (~30th), or early 2017, this coincides nicely with the work on the gold/silver ratio I've done that suggested we could be in for a reversal in the precious metals.
I like the current dynamic of Vodafone share and the strong upwards momentum they currently have.
This is still an evolving chart so perhaps a trailing stop would be more appropriate here to avoid being hit large on any pull backs, which I would expect to be spiky like the rebound from the 190 level.
Multidiagonals currently seem to target around the 232 level.