News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
FTSE 100 May Bounce as Traders Book Profits Ahead of U.S. Retail Sales

FTSE 100 May Bounce as Traders Book Profits Ahead of U.S. Retail Sales

Alejandro Zambrano, Market Analyst

The FTSE 100 has stabilized after yesterday’s steep decline, but still stands to meet our second target of 6100 over the next 1 to 2 trading sessions. A profit target level for bearish traders beyond 6100 is the October 2 low of 6047.

Yesterday, the FTSE 100 turned bearish as price traded below the support level of 6250 as soft commodities weighed heavy on the FTSE and the S&P 500 turned soft on continued hints about Fed rate hikes.

The FTSE 100 may rise this morning to claw back some of its losses, but also on traders booking profits ahead of the afternoon’s U.S. retail sales report and Uni. of Michigan Consumer Confidence survey. If price reaches the 6200-6250 range, the 38.2 percent to 61.8 percent Fibonacci level of the current bearish leg of 6330 to 6126, we would expect traders to consider fresh short positions as the risk-reward-ratio favours the downside in this range. If the move higher occurs on a better than expected U.S. data report, then traders are probably hesitant to remain bearish. Traders will also hesitate in their being bearish if we get a daily close above 6250. See chart below.

Economist consensus expects the retail sales headline number to rise by 0.3% MoM and retail sales minus the auto stats to rise by 0.4% MoM. The retail sales control group is expected to rise by 0.3% MoM. U. of Michigan Consumer Confidence survey is expected to print 91.5.

FTSE 100 May Bounce as Traders Book Profits Ahead of U.S. Retail Sales

Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano

--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com

Contact and follow Alejandro on Twitter: @AlexFX00

Learn more about trading, join a London Seminar

To be added to Alejandro’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES