Market Overview: FTSE 100 Futures

The FTSE 100 futures went at all times in lengthy final month with consecutive bull bars closing above the shifting common. We left the wedge backside and broke to the upside, so most bears bought out of the best way. It’s a buying and selling vary, so most gaps ought to shut, and pullbacks may be deep.

FTSE 100 Futures

The Month-to-month FTSE chart

• The FTSE 100 futures chart final month had a bull bar closing close to its excessive, so we must always go above it.
• It’s the second consecutive bull bar closing above the shifting common so seemingly at all times in lengthy.
• The bulls noticed a bull channel because the COVID crash, and we had a three-legged pullback to the shifting common earlier than a purchase sign. A bull flag breakout and pullback lengthy.
• The bears see a buying and selling vary and the market had hassle going above the pre-COVID highs. They noticed a double high however bought a weak sign down – an enormous bear bar closing on the shifting common.
• The bears by no means bought a very good promote and tried to promote larger, but when they did, they’re caught.
• We must always dip beneath the excessive of the prior ATH to let these bears out. They took an inexpensive scalp. In the event that they don’t get set free and the hole stays open, we must always go larger for a bigger measured transfer.
• The protecting cease for the bulls is beneath that bear doji.
• It’s a buying and selling vary, so we must always have overlapping bars subsequent month, even whether it is one other bull bar.
• It’s because the bears can argue that there are not any open gaps. So, it’s extra like a trending buying and selling vary or late-stage channel. Bears will proceed to fade highs till they get caught.
• it’s higher to be lengthy or flat.
• Anticipate sideways to up subsequent month.

The Weekly FTSE chart

• The FTSE 100 futures final week was a bull bar closing on its midpoint.
• It was an try at a double high by the bears.
• It closed on the first measured transfer goal from the sooner breakout. There’s yet another goal above.
• The bulls see three legs up, a parabolic wedge high, so we must always quickly see a pullback with no less than two legs sideways.
• However it’s a tight channel, and there are open gaps beneath, so there’s nothing for bears to promote.
• The bears noticed a wedge high that triggered, however we went above it. So it’s a breakout above a double high, and in the event that they didn’t take the loss, they’re scaling in two instances that vary above.
• The protecting cease is way away, so it’s higher to attend for 2 legs sideways earlier than trying to purchase once more. Merchants may search for a Excessive 2 purchase above a very good bull bar close to the shifting common.
• Are you able to promote right here? No. There are consecutive bull bars once more, so a promote here’s a low-probability commerce.
• Take a look at the higher tails above the bars. It exhibits the bears attempting to fade the breakout, and so they may be trapped. it additionally means to commerce it like a channel and look so as to add on decrease.
• The bears had a promote sign but it surely by no means triggered. There’s a likelihood we get a measured-move up once more from this hole, so higher to belong or flat.
• We additionally triggered one other purchase sign on the month-to-month, so the primary reversal is more likely to be minor.
• At all times in lengthy so count on sideways to up subsequent week.

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