UK took a big hit today with GBP opening gaps -1% over almost all currencies, due to Scotland independence surveys.
The short is quite easy and the risk reward very good.
* resistance unbroken
* GBP in freefall
* Instability due to Scotland
* And cherry on the cake, we may have a Wolfe Waves Pattern playing there, with Target Price around 6400 (5% Gain).
I shifted my outlook to Neutral because we are now in a very strong resistance area of Daily TF Murrey Math Resistance level where we several times failed to go above. I expect one more higher high to correct down for Wave iv of Wave (c).
I wait until tomorrow closures weekly and monthly to decide which way to go
Stop above the maximum to look for new highs or below the minimum for retest of the channel
Bye
RSI divergence and a MACD crossover suggest UK100 is heading for another downtrend. I am just waiting for an RSI cross below 50 to confirm the negative trend.
I haven't been much into Harmonics and was taking a look at the UK100 CFD for FTSE100. Can those who trade Gartleys chip in with your thoughts here?
I have based this Gartley off the article here (www.goldenwire.com) which seems to offer the most simplest and easiest explanation of the Gartley 222 pattern.
Targets are set to 61.8% of CD, 127% and the entire XA...
Lots of things happening here.
1. Possible head & shoulders formation taking place. Need a break of the neckline at 6698 to validate this set up. Targeting 6608.
2. Upward trend line has been broken and price managed to retrace, breaking it to the upside but failing to make a higher high (till now). Look for short positions from 6732.
Notes on chart.
Ive been trial trading for a while and just started a real money account. Focusing mainly on Index SPX500, NAS100, UK100 as had most experience with them in trial and want to move into currencies and others once i get a feel for them.
I dont pretend to be pro and i havent shown lots of technical trend lines this is just a rough of what im seeing in UK100 and where...
This idea is very simple based on the fact that when the footsie reaches the 6700 - 6900 it usually reverses. This area is where all the multi year rallys have ended. I can't tell if the market will pass this strong resistance area in the long term, but it's obvious how on the shorter term it rejects it. Momentum on the MACD started falling so the power of bulls...
The UK100 / FTSE has been in a consolidation range that formed a huge symmetrical triangle. Noted on chart are bull and bear targets. However, the trend is up, so my bias for the FTSE is the bull market will continue and make new highs in 2014.
Trade set ups for longs, buy on a pullback to bottom of triangle trendline - pullback to 6574 on signs of support -...
The FTSE is at a confluence level of trendline and 50% fib. It also has a similar pullback to its previous two pullbacks. If Santa is going to show up, could it be here?
Historially, 'santa rally' due about now.
Market fairly valued on a dividend DCF basis.
So expect small rise now - new years eve.
Chart indicates increasing 'compression' so expect volatility in early '14
