FTSE 15/06/18 – Analysis by Carol Harmer

Written by Published in Carol Harmer, Trader Updates, Uncategorized

FTSE was a little peach yesterday holding support at 7660/55, lows of 7650 and then we saw the move higher taking us to 7795….Now although this was above 7770 the market really didn’t do much after hitting this 7795 and quickly came back to stay within the range. There I would assume that the break of 7770 was stops going off…This is understandable and as
we know Algos can take us up to 25 pts away from a heavy resistance/support area…

So I am not too concerned with the shorts at 7770…Yes Fridays can be lacklustre …but we are seeing strength really pushing through on other stock markets and the US especially is looking toppy….so we have to take this into consideration…

Overnight we have seen very little action….

Now the point being is this….FTSE yesterday had every chance to break higher…If we cannot today, and we are below 7770 the market will take this as a bearish sign going into next week….and traders holding longs above 7770 and not covering will be eager to be flat going into the weekend…

The levels do remain the same on the downside …there is still this support down at 7660/55…and we would still be buyers on weakness unless we lose 7632…

Only if above 7811 would there be a case for reversing longs as this would indicate the market should trade higher towards 7904/7911….

 

 

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Simon Campbell

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