Technical
FTSE – Breaking from an inverse head and shoulders bottom
Weekly: Trading within a long-term bullish channel. The recent corrective move from the highs at 7904 stalled at the 50% Fibonacci retracement level (6699). Buyers were found at this level and the market has rallied. There is no sign that the long-term bullish sequence is stalling.
Daily: A break of bespoke resistance at 7261, and the move higher is already underway. Broken out of the Head and Shoulders formation to the upside. The formation has a measured move target of 7904. The continuation higher in prices through resistance has been impressive with strong momentum and shows no signs of slowing.
Intraday: Broken out of the range formation to the upside. The medium-term bias remains bullish. Positive overnight flows lead to an expectation of a firm open this morning. News events could adversely affect the short-term technical picture. Preferred trade is to buy on dips.
Action: We look to buy on pullbacks towards 7215
Stop: Stops to be placed at 7120
Targets: 7600 & 7900
Risk Warning
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- If the market moves against your position, your capital is at risk and you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position.
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- The high degree of leverage that is obtainable through for example futures trading, options trading, Spread Betting, Binary Betting and CFD trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains. This brief statement cannot disclose all the risks and other significant aspects of the commodity markets, including trading shares, currencies, and stock indices. You should therefore carefully study financial trading before you enter the financial markets with the view of buying and selling, including shorting, securities in the market place.
Before deciding to invest in spot foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with spot foreign exchange and futures trading, and seek advice from an independent financial advisor (IFA) if you have any doubts. All information posted on this website is of our opinion and the opinion of our visitors, and may not reflect the truth. Please use your own good judgment and seek advice from a qualified consultant or IFA, before believing and accepting any information posted on this website.
Your capital is at risk.
Losses can exceed deposits