FTSE Friday 28/02/2020

#FTSE #Gold A week ago, we thought we risked being panic merchants by giving criteria postulating an early warning scenario for a FTSE drop to 5,850 points. Given the UK index has managed lose nearly 700 points, it has dragged itself into a region where 5,850 is no longer such a daft idea. But crucially, all we have seen is early warning. We have yet to witness, (from our perspective) confirmation.

In fact, if we drag out the chart from the market plunge of from Oct 2008 until Mar 2009 and get busy with a Red crayon, the market has yet to break through the final uptrend, the one which will suggest the recovery (?) from the lows of 2009 has failed. Unfortunately, the market is getting close and closure below 6,700 will tend tick a fairly major box for some troubled times ahead. Such a scenario allows continued eventual reversal to 6,420 and a deluxe ticket into the Land of Lower Lows.

If 6,420 makes an appearance, we shall be presenting a drop target below such a level at 5,850 points. If broken, secondary calculates at a bottom (hopefully) of 5,260 points. Alas, there is an unfortunate aspect to such a level which allows calculation of a 3rd level. It’s a market bottom, ultimately, at 3,655. Rather scary to note this is marginally higher than the low of 2009.

In summary, it’s early days, despite how utterly foul the last few sessions have proven. Perhaps it’s also worth noting drops this severe can also reverse with similar strength, if conditions prove to change. As winter draws to a close, it’s easy to suspect (hope) a respiratory virus shall find it difficult to sustain dominance of headlines?

Hey, chart goes here

Near term, for the FTSE for FRIDAY, we shall be watching Japan through the night, hoping it ends positive. If it does, this will send a pretty strong signal Europe and the US should expect a respite on Friday. Near term, above 6,848 points is supposed to bring recovery to an initial 6,924 points. If exceeded, secondary works out at 6,964 points though, realistically, any positive sentiment could easily drive the market toward 7,106 points. If triggered, the tightest stop needs be just under Thursdays low of 6729 points.

Alternately, weakness now below 6729 allows reversal to an initial 6,580. If broken, secondary is at 6,455.

Hey, chart goes here

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

10:22:35PM

BRENT

50.89

50.38

49.895

 

51.8

52.46

53.07

 

50.96

‘cess

10:24:31PM

GOLD

1645.56

1634.6

1626.5

 

1649

1660.38

1670.1

 

1641

10:35:04PM

FTSE

6644.63

6614

6541

 

6720

6846

6877

 

6796

Success

10:38:22PM

FRANCE

5391

5383

5319

 

5492

5511

5545

 

5457

Success

10:43:27PM

GERMANY

12083.5

12032

11891

 

12230

12170

12269

 

12042

‘cess

10:50:42PM

US500

2950.47

2944

2917

 

3004

3004

3023.5

 

2954

Success

10:57:08PM

DOW

25538.5

25441

25415

 

25745

25745

25820.5

 

25540

Success

11:01:41PM

NASDAQ

8354.62

8327

8153

 

8470

8470

8483

 

8370

Success

11:06:24PM

JAPAN

21158

21138

21097

 

21321

21740

22315.5

 

21540

Success

 

27/02/2020 FTSE Closed at 6796 points. Change of -3.49%. Total value traded through LSE was: £ 8,670,151,517 a change of 31.45%

26/02/2020 FTSE Closed at 7042 points. Change of 0.36%. Total value traded through LSE was: £ 6,595,554,712 a change of -16.85%

25/02/2020 FTSE Closed at 7017 points. Change of -1.94%. Total value traded through LSE was: £ 7,932,387,742 a change of 6.36%

24/02/2020 FTSE Closed at 7156 points. Change of -3.34%. Total value traded through LSE was: £ 7,457,826,437 a change of 17.05%

21/02/2020 FTSE Closed at 7403 points. Change of -0.44%. Total value traded through LSE was: £ 6,371,450,688 a change of 1.87%

20/02/2020 FTSE Closed at 7436 points. Change of -0.28%. Total value traded through LSE was: £ 6,254,655,479 a change of 11.64%

19/02/2020 FTSE Closed at 7457 points. Change of 1.29%. Total value traded through LSE was: £ 5,602,530,865 a change of -6.87%

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