Pattern – Bearish flag on hourly chart following head and shoulder breakdown on daily chart on Monday
Level to watch out – Selling could gather pace below 6654
Overall, as noted in the morning note, the index appears on track to test 6600 levels. Losses could be extended further as the daily RSI is still well above the oversold territory.
Short-term bearish...
A minor rebound to 6724 levels was quickly undone as anticipated in the morning update. The index is likely to end on a weaker note, more importantly below the H&S neckline, thus marking back to back close below neckline support.
Thus, doors are open for a decline to 6600 levels.
Bearish invalidation is seen only if prices end the day back above H&S neckline level.
Support – 6654, 6615-6600, 6476 (100-DMA)
Resistance – 6723, 6764 (H&S neckline), 6800
Overnight action isn’t exciting
US stocks surged following dovish comments from Fed’s Brainard. Meanwhile, Asian stocks opened higher, but failed to hold onto gains and fell back into losses.
Consequently, FTSE100 may either open higher and retreat or open with...
Despite the rebound of monthly 50-MA support in July and a positive August candle, the subsequent failure to hold above monthly 5-MA this month coupled with a drop below monthly 10-MA amid bearish indicators suggests the stock is likely to re-test monthly 50-MA support seen today at 2615 levels.
Shares gaped lower today and extended losses on reports the...
Sharp losses in the US equities on Friday followed by losses in Asian stocks amid rising long duration government bond yields across the globe could see the FTSE100 index open below the head and shoulder neckline level of 6750 levels, which is also the 100-DMA figure.
Break below neckline support of 6750 would open doors for a 100 point drop to 6650 levels. The...
The FTSE 100 is trading near 6950, up more than 1200 points from the post-Brexit low of 5727.
Fundamentally, this is because of the sharp fall in Sterling.
However, technically, the FTSE 100 may be due for a correction.
It has relentlessly traded upwards, however:
1) There is strong resistance to be expected at 7000, a psychological round number.
2) There is...
Looking at x2 potential long trades both with a target of 7000 entry 1 on the pull back at 23.60% and second at just above 38.20% Fib i have not taken this trade yet just considering it and will monitor the open on Monday for signals on direction. Also keeping a close eye on 6642-6650 support area if this area holds we could see a straight turn around to the upside.
Index appears on track to test 6754, which marks the confluence of head and shoulder neckline and 50-DMA.
A day end close below 10-DMA today would further add credence to the anticipated slide to 6754 levels. Daily RSI has just turned bearish as well.
H&S breakdown would open doors for a slide to 6650 levels, however, bears should note that 5-week and 10-week...
FTSE100 is hovering in a narrow range of 6800-6900 this week.
Despite, last Friday’s rebound from 6746 to 6894 levels, the index has had a tough time extending gains above 6900 levels.
Also note the today’s candle has a long upper shadow and that forces us to consider the possibility of selling pressure gathering pace, especially if the head and shoulder...
Good news is here for FTSE100 bulls. There are no signs of typical bull market complacency in the recent rally in the mining heavy index, said Richard Hunter, Head of Research at Wilson King Investment Management.
Wilson joined us on today’s London open show and talked about the likelihood of the index heading towards/breaching 7000 levels. Check the entire...
Despite bearish daily close below 6780 (July 27 high) on Thursday, the rebound seen today if results in a day end close above a minor falling trend line level would suggests the doors are open for a move higher to 7000 levels.
Bullish invalidation is now seen only below Thursday’s low of 6723, given the sharp rebound witnessed today.
Smart rebound from 6780 (July 27 high) in early Europe and a subsequent failure at 10-DMA and a fall back below 6780 amid bearish break in RSI suggests the index is likely to target 6680 (23.6% of Brexit day low – Aug 15 high). A violation there would expose 6615.8 (Aug 4 low).
On the higher side, only day end close back above 6780 would signal bearish invalidation.
Bearish factors –
Bearish crossover between 5-DMA and 10-DMA
Bearish break in daily RSI from rising channel
Increased odds of Fed rate hike
Bullish factors –
Cable weakness &
The index is still above key support level of 6780
Inverted head and shoulder breakout target yet to be achieved
Thus, the overall trend remains bullish unless the index closes...
Daily chart chows –
Falling trend line has been breached, however,
RSI is close to being overbought, while money flow index is going nowhere
Hence, failure to take out 175.45 (March 8 high) could yield a pull back to falling trend line level of 165 and 160 (23.6% of July 2015 high – June 2016 low).
On a larger scheme of things, the stock appears on track...
Fresnillo is down 3.61% today and is a top FTSE100 loser.
The daily chart shows –
• Double top breakdown
• Money flow index approaching oversold region for the first time since November 2015
• RSI is approaching oversold region for the first time since July 2015
Overall, prices appear on track to test 1500 levels (100-DMA), although a minor pull back once...
Price action is following structure. Both rallies up from the initial swing low have been equal in length. We're likely to see a re-test of previous highs which is in line with current structure.
Price is likely to reverse in the blue box from 6779 down to 6735.
Potential trade set up for a buy at 6735 is a 1.62% ratio trade with stops at 6599 and take profit at 6954.
