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.

Free Trading Guides
EUR/USD
Bearish
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
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • Japanese Yen, US Dollar May Gap Higher as Week Starts on Virus Fears $USDJPY #USD #coronarovirus - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/01/26/Japanese-Yen-US-Dollar-May-Gap-Higher-as-Week-Starts-on-Virus-Fears.html?CHID=9&QPID=917702 https://t.co/RwVEF3rrO6
  • Here is my video to prep for the new trading week: "S&P 500 Tumble Threatens Quiet Bull Channel, #Fed and 4Q #GDP Top Event Risk" https://www.dailyfx.com/forex/video/daily_news_report/2020/01/25/SP-500-Tumble-Threatens-Quiet-Bull-Channel-Fed-and-4Q-GDP-Top-Event-Risk-.html?ref-author=Kicklighter?CHID=9&QPID=917719
  • RT @AFP: #BREAKING Five rockets hit near US embassy in Iraq capital: security source https://t.co/2Brj01kU3R
  • Everyone develops their trading style differently; however, these are two effective strategies for trading $XAUUSD that every trader ought to be aware of: https://t.co/UHmxPVEiQU https://t.co/XrOawSAdqd
  • Wtf https://t.co/BMTxEKoawu
  • RT @kobebryant: Continuing to move the game forward @KingJames. Much respect my brother 💪🏾 #33644
  • Rest in peace to one of the greatest, can't even believe it
  • this makes me feel awful, a true punch to the gut #RIPKobe https://t.co/TWOLUdjeIo
  • wow
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/nW2jB7kV9c
FTSE 100 Tech Update: Trading Levels, Pattern Potential

FTSE 100 Tech Update: Trading Levels, Pattern Potential

2016-11-16 08:35:00
Paul Robinson, Currency Strategist
Share:

What’s inside:

  • The FTSE 100 is holding on to two trend-lines of varying degrees
  • Bounce looking corrective so far, potential big picture pattern forming
  • Support and resistance outlined

The last time we looked at the FTSE 100 it had just ripped 300 points, with US presidential election-induced volatility causing large gyrations in global financial markets. The rip took the market back to the trend-line off the 10/11 record highs. At the time, we noted that “shorts look more attractive at overhead levels.” That turned out to be an understatement as the FTSE reversed nearly all of its gains in less than two days. The drop took it back to developing trend-line support off the mid-June lows (‘Brexit included). So far we have seen a bounce develop from rising support, but thus far it hasn’t been very inspiring. The feeble nature of the bounce has a corrective feel about it given the nasty decline proceeding it and overall trend since notching out record highs last month.

If the UK index should find good sponsorship, we will look to the 6955/18 zone and the trend-line off the October highs as resistance should the FTSE be so inclined to rise that high. The two technical events could coincide for further reinforcement of one another.

Support continues with the June trend-line. Should this give way, a low-angled trend-line running back to the 8/4 swing low will come into play along with the 11/4 swing low at 6676. A break below both the t-line and price support will be significant and likely usher in a decent amount of selling.

If support holds, with a little more time, a head-and-shoulders top could unfold; the ‘left shoulder’ coming in at the August peak, the ‘head’ at the October peak, and the recent spike high marking the ‘right shoulder’. The trend-line extending back to August would then act as the ‘neckline’. But before we go getting too imaginative, we need to see more price action before this scenario can become reality.

For now, we will operate off the levels and lines above and below until we see evidence emerge suggesting to a sustainable trend about to develop.

FTSE 100: Daily

FTSE 100 Tech Update: Trading Levels, Pattern Potential

Created with Tradingview

Check out our Forecasts and Trading Guides.

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly via email, please sign up here.

You can follow Paul on Twitter at @PaulRobinonFX.

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

DISCLOSURES

News & Analysis at your fingertips.