FTSE Technical Analysis – March Lows Come Under Assault

23

FTSE Technical Highlights:

  • FTSE bounce short-lived, probing March lows
  • Macro-top still in effect, important level here

Looking for forecasts, long-term trade ideas, and educational content? We got you covered. Check out the DailyFX Trading Guides page for details.

FTSE bounce short-lived, probing March lows

In last week’s commentary, I looked at the oversold bounce developing in the FTSE with the expectation that it would be just that, a bounce before more selling. Monday’s key-reversal turned momentum lower and has the March low coming under fire.

It’s a big level given the macro-topping pattern in play since last year. The pattern picked up steam back in early August when a lower-high was cemented, bringing in the prospects of a drop to the bottom of the price sequence, or March low. But now that we are there, if it is broken, then even more bearish implications will be brought to light.

Based on the height of the pattern, a break points to a move all the way down to around 5800. But for now, in the short-run we may see a bounce develop off the March low. As has been the case, though, it’s not playing the bounces that holds appeal, rather selling them once momentum stalls.

Continue to monitor global markets as things are beginning to turn ‘macro’. The S&P 500, which has been the lone standout among major global markets, is coming under serious pressure and breaking long-term trend support levels.

FTSE Daily Chart (Testing March low)

FTSE Technical Analysis – March Lows Come Under Assault

Check out this guide for 4 ideas on how to Build Confidence in Trading.

FTSE Weekly Chart (‘RST’ pattern)

FTSE Technical Analysis – March Lows Come Under Assault

You can join me every Tuesday at 9 GMT for live analysis on equity indices and commodities, and for the remaining roster of live events, check out the webinar calendar.

Tools for Forex & CFD Traders

Whether you are a beginning or experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

LEAVE A REPLY

Please enter your comment!
Please enter your name here