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
Bullish
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
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • 🇺🇸 Jobless Claims 4-Week Average Actual: 2,284.00K Previous: 2608K https://www.dailyfx.com/economic-calendar#2020-06-04
  • 🇺🇸 Nonfarm Productivity QoQ Final Actual: -0.9% Expected: -2.7% Previous: 1.2% https://www.dailyfx.com/economic-calendar#2020-06-04
  • 🇺🇸 Balance of Trade Actual: $-49.40B Expected: $-49B Previous: $-44.4B https://www.dailyfx.com/economic-calendar#2020-06-04
  • 🇺🇸 Initial Jobless Claims Actual: 1,877K Expected: 1800K Previous: 2123K https://www.dailyfx.com/economic-calendar#2020-06-04
  • 🇨🇦 Balance of Trade Actual: C$-3.25B Expected: C$-2.36B Previous: C$-1.41B https://www.dailyfx.com/economic-calendar#2020-06-04
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.41%, while traders in US 500 are at opposite extremes with 76.01%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/2ZN97NO90x
  • Heads Up:🇺🇸 Jobless Claims 4-Week Average due at 12:30 GMT (15min) Previous: 2608K https://www.dailyfx.com/economic-calendar#2020-06-04
  • Heads Up:🇺🇸 Balance of Trade due at 12:30 GMT (15min) Expected: $-49B Previous: $-44.4B https://www.dailyfx.com/economic-calendar#2020-06-04
  • Heads Up:🇺🇸 Initial Jobless Claims due at 12:30 GMT (15min) Expected: 1800K Previous: 2123K https://www.dailyfx.com/economic-calendar#2020-06-04
  • Heads Up:🇺🇸 Continuing Jobless Claims due at 12:30 GMT (15min) Expected: 20050K Previous: 21052K https://www.dailyfx.com/economic-calendar#2020-06-04
FTSE Chart Analysis – Watching Short-term Price Action for Next Move

FTSE Chart Analysis – Watching Short-term Price Action for Next Move

2018-11-08 12:00:00
Paul Robinson, Strategist
Share:

FTSE Technical Highlights:

  • FTSE stabilizing, but can it continue?
  • Short-term price action to determine next move
  • Broader trend, bias still negative even on bullish outcome

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

FTSE stabilizing, but can it continue?

The bounce off the lows hasn’t been as fierce as in other global markets, namely the U.S. But that isn’t all that surprising given the relative strength difference that has been going on for most the year. The FTSE and other European indices have been broadly weak, and while this is expected to continue in the intermediate-term, the near-term outlook could brighten up a little.

In yesterday’s indices/commodities webinar, we looked at the inverse head-and-shoulders pattern forming on the hourly time-frame for not only the FTSE, but also the DAX and CAC. The latter two indices have better defined patterns but the FTSE could still lift from the formation all the same.

The caveat is a) There is resistance right in the vicinity of the neckline and b.) Bigger resistance lies just beyond a break of the neckline. So while the FTSE could continue to recovery it isn’t without its obstacles to overcome, and it may end up a better set-up for shorts once a corrective bounce finishes than it is for would-be longs to try and take advantage of a rising market.

The alternate bearish route, which is often times seen with these types of patterns (H&S) when the neckline is tilted as it is, is for a wedge to form. While this could resolve itself upward just as the inverse H&S implies, it is more generally regarded as corrective in nature. With the trend pretty clearly down for some time now, a breakdown out of a well-developed wedge could have us looking at recent lows again, or worse, pretty quickly.

FTSE Daily Chart (Resistance ahead, trend negative)

ftse daily chart, resistance ahead, trend negative

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

FTSE Hourly Chart (Inverse H&S or corrective wedge)

ftse hourly chart, inverse H&S or corrective wedge)

You can join me every Wednesday at 10 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

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

DISCLOSURES

News & Analysis at your fingertips.