Technical Analysis

FTSE Chart Evaluation – Lifting on Heels of Surge in S&P 500, however Not Significant

FTSE Technical Highlights:

FTSE begins day on optimistic notice with assist of Powell, S&P 500

Value motion nonetheless sluggish, suggests market solely digesting prior losses

Nonetheless within the works comparatively quickly; a weekly shut under March/Oct lows is huge hassle

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FTSE begins day on optimistic notice with assist of Powell, S&P 500

Yesterday, shortly after European commerce closed Fed Chairman Powell delivered a speech the place he eased up on the Fed’s hawkish tone, which despatched U.S. markets spiraling larger and with it sympathy strikes out of different main international markets to begin at this time. However it could not final lengthy, development and market tone are nonetheless unfavorable.

As of late the FTSE has been caught in a washer of uneven buying and selling, making the previous month or so troublesome and in addition indicative of corrective worth motion of the final down-move throughout October. It’s presently attempting to cross a trend-line from September, one it was rejected from yesterday.

A break above might permit for the market to commerce larger within the near-term. A transfer in direction of the highest of the latest vary within the 7155/96-area would offer an honest danger/reward spot for shorts. It’s additionally potential, relying on the timing, a run-in with the trend-line off the August peak might take form, creating confluent resistance.

Buying and selling as much as these factors of resistance, although, might even become a tall order given the general weak tone to the market; therefore why buying and selling from the long-side proper now holds little enchantment from the place I sit.

FTSE Each day Chart (Value motion corrective of final down-move)

FTSE daily chart, price action corrective

Take a look at this information for four concepts on the way to Construct Confidence in Buying and selling.

Scaling again to the longer-term chart, a weekly shut under 6851 in some unspecified time in the future down the street could be thought-about a giant unfavorable for the market as the underside of the ‘RST’ sample I’ve been mentioning the previous few months could be gaining one other leg of momentum in direction of a a lot giant decline. Extra on that when it turns into extra related once more…

FTSE Weekly Chart (‘RST’ sample nonetheless in impact)

FTSE weekly chart, 'RST' pattern still in effect

You may be a part of me each Tuesday at 9 GMT for dwell evaluation on fairness indices and commodities, and for the remaining roster of dwell occasions, take a look at the webinar calendar.

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—Written by Paul Robinson, Market Analyst

You may observe Paul on Twitter at@PaulRobinsonFX

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