The FTSE 100 has been held up by a strong level of support over the past couple of months.
February 2016 created a low at 5499 which was retested in March and April 2020 and going into
May, we want to see momentum to the upside.
Identifying major levels of support in advance is very useful because it will give you an objective
view of the markets, it also prepares you in advance for potential opportunities.
In this case, we will be getting ready for shorting opportunities if price decides to trade below 5499.
If price remains above support and begins to rise then we can prepare for long opportunities.
Price is still below the daily 200 simple moving average (not shown) and we want to see price move
above it, but ultimately we want to see price break above the current all-time high at 7903 before
looking for long opportunities.
For now, we will continue to stand aside from entering positions in stocks while we preserve our capital.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
February 2016 created a low at 5499 which was retested in March and April 2020 and going into
May, we want to see momentum to the upside.
Identifying major levels of support in advance is very useful because it will give you an objective
view of the markets, it also prepares you in advance for potential opportunities.
In this case, we will be getting ready for shorting opportunities if price decides to trade below 5499.
If price remains above support and begins to rise then we can prepare for long opportunities.
Price is still below the daily 200 simple moving average (not shown) and we want to see price move
above it, but ultimately we want to see price break above the current all-time high at 7903 before
looking for long opportunities.
For now, we will continue to stand aside from entering positions in stocks while we preserve our capital.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
