APosner

FTSE 100 (EWU) poised to sell off

BATS:EWU   ISHARES MSCI UNITED KINGDOM ETF
443 0 0
Markets around the world have had a nice run lately including the FTSE100 but this pattern presents a risk. Using the EWU             ETF as a proxy for the FTSE100 (they differ a bit but its close) the chart demonstrates the breakout from resistance on 1/2/13, the market retesting old resistance now support on 1/8/13 and the rally higher from there. If we look at the price action from 12/12/12 until now it forms a bearish rising wedge .
According to Bulkowski a rising wedge has four required properties:

1. Two up sloping trend lines
2. Multiple touches
3. Three week minimum
4. Volume trend should be lower

This chart meets all the criteria except the last where the volume appears flat. As time has gone by I have discounted the value of volume indicators since HFT             and dark pools diminish the accuracy of this indicator. For the signal to be nullified price needs to break out of the wedge and if it can price has more room to run higher.
United States
United Kingdom
India
Deutschland
España
France
Việt Nam
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Support Priority Support Report Issue Ideas Published Followers Following Private Messages Chat Sign Out