Banking Sector for 19/08/2019

#Brent #DAX It’s been nearly a year since we last irritated ourselves (link) with a look at the clown farm, The Banking Sector. Unsurprisingly, it did NOT escape from trouble, it achieved our initial drop target, and now is closing (finally) on our secondary target, the point at which we hope for a rebound.

Or will it?

The immediate situation is of weakness below 3360 still indicating the potential of 3236 and hopefully a bounce but we’re pretty concerned. A break below 3236 shall move the index below the long term RED uptrend and suggest the potential of 3078 making a guest appearance. This would tend be a jolly poor show as while there will be hope for a bounce as the index meets the lows of 2016 and the Brexit vote, the impact of breaking the uptrend since the banking crash of 2009 will easily allow a third target level to make an appearance, a completely absurd looking 2460.

To be honest, it’s not as absurd as a major attraction below RED calculating at just 320 points. Obviously, an utterly silly number as we can surely trust the banking system…

In the interests of fairness, there’s quite a lot arguing for a recoil if 3236 makes an appearance and it’s certainly getting close to this target level. If any strength is indeed evident, it could bounce anytime soon. This being the case, movement now above 3467 should prove capable of a market lift to 3529 points. If exceeded, secondary calculates at 3840 and a coming challenge of the downtrend since 2008. We’re not inclined to any optimism over this scenario, just yet.

About the only conclusion we draw suggests some misery remains within the retail banking sector but there appears a chance of some recovery soon. We can hope!

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

12:07:19PM

BRENT

58.43

57.9

56.61

55.04

58.75

58.8

59.25

59.84

58

12:41:38PM

GOLD

1512.97

               

Success

1:26:37PM

FTSE

7131.75

               

1:34:09PM

FRANCE

5301

               

1:36:01PM

GERMANY

11578.86

11418

11367.5

11295

11505

11585

11657

11788

11490

‘cess

1:39:52PM

US500

2891.29

               

Success

1:41:58PM

DOW

25918.3

               

‘cess

1:46:53PM

NASDAQ

7602.87

               

Success

1:55:55PM

JAPAN

20605

               

‘cess

16/08/2019 FTSE Closed at 7117 points. Change of 0.71%. Total value traded through LSE was: £ 4,796,388,479 a change of -14.47%

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