As I anticipated we are seeing a retest underway of the S+D zone precipitated by fears associated with COVID. We are currently seeing consolidation along the Daily 50 moving average at present which I admit is often a contentious level of dynamic resistance for the FTSE later. However we are beginning to see lower volume in the selling waves on the lower time frames with the 4 hour wave currently underway. Fundamentally our officials have attempted to distance the UK from the possibility from further lockdown and my day job would suggest that we are not near the point of saturating our healthcare resources at present (I monitor this very closely.) Thus my bias is back up.
I will be watching closely for signs of reversal on 15m timeframe. I have popped a small position on the level of the daily 50 and my likely criteria for entry for me will be a break and close above the 15min 21 ema and then wait for the retest of the 8 ema. I will then be looking for price acceptance back above 7240 (4 hour 200 ema) when I will increase my position further. A Close on the 1 hour or 4 hour time frame below 7190 would invalidate this idea for me and I suspect we could see as low as 7000 again.
Keep an eye on the news and trade safe.
I will be watching closely for signs of reversal on 15m timeframe. I have popped a small position on the level of the daily 50 and my likely criteria for entry for me will be a break and close above the 15min 21 ema and then wait for the retest of the 8 ema. I will then be looking for price acceptance back above 7240 (4 hour 200 ema) when I will increase my position further. A Close on the 1 hour or 4 hour time frame below 7190 would invalidate this idea for me and I suspect we could see as low as 7000 again.
Keep an eye on the news and trade safe.
