FTSE, Germany, France. 21/04/2020

#Gold #SP500 Hoping Monday would clarify market direction proved as great an idea as expecting a politician to interview well, when asked about Covid-19 planning. Sooner or later, someone is going to joke the “real victims” of this crisis are ministers of the UK’s Government. Another joke, particularly germane to the electric vehicle industry, came from the throwaway comment, “My car now gets 1 month to the gallon…” Within hours, this joke was painfully reflected in May’s Crude Oil contract prices.

Please remember, the fall in the price of Crude related to May Contracts only. Contracts for June and July are relatively healthy though this may change, if stagnation continues.

Monday proved to be a bit of a waste of time on the markets, until the price of May’s Crude contract fell apart. We suspect this is liable to provoke a little chaos on the index’s for Tuesday and beyond. As with our viewpoint against the US markets, we’ve opted to emplace a trend line since the start of 2016.

 

On the FTSE, we suspect the ruling downtrend was defined by movements between the 20th and 24th February. If this is indeed the case, the UK market presently requires exceed 6,331 points to break Blue on the chart. Early warning of a miracle shall be strength above 5950 points. Equally for the FTSE, there’s now a little problem if the market stumbles below 5,550 points. In such a scenario, if enters a cycle to 4,905 points with secondary, if broken, at a bottom (hopefully – this is a fingers crossed thing) now at 3,942 points.

 

Germany, similar to the FTSE, failed to give any real indication of direction with Mondays trade. We shall be inclined to take movements seriously should the index next make it above Red on the chart as apparently this should start a surge to 12,021 points with secondary, if exceeded, up at 12,958 points. There are already some indications Germany’s policy, unlike the UK, of not killing off their population is paying dividends though we wonder how their manufacturing dependency will cope as export demand shrinks. (Thanks to a compromised immune system, the writer has an axe to grind regarding the UK’s approach)

If we examine negative scenario, should Germany now trade below 10,050 then things risk going wrong. Initially we’re looking at a drop potential at 9570 with secondary, if broken, down at 8850. The secondary provides a dangerous issue, taking the index into a zone with 7000 awaiting, along with an ultimate bottom of 4,692 points.

 

Finally, France and the CAC40. France, presently trading around 4520, only needs exceed 4580 to give an early alert for some positive recovery. Allegedly, this should prove capable of driving the index up to an initial 5256 points with secondary, if bettered, at 5430 points. If opting to play safe, it might be wise to await the market regaining the Red trend line and presently, this implies a sane trigger level should be 4850 currently.

The other side of the coin comes if the French market recedes below 4,300 points as this risks reversal to an initial 4060 points. If broken, secondary calculates at 3699 points but realistically, if such a calamity falls, the index could rattle down to a bottom (again, fingers crossed) at 3071 points.

 

Our next collective project shall cover some commodities; Gold, Oil, and something else…

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
10:26:37PM BRENT 28.37 ‘cess
10:28:38PM GOLD 1698.44 1669 1654 1623 1703 1703 1709.5 1723 1678 ‘cess
10:32:42PM FTSE 5738 ‘cess
10:41:01PM FRANCE 4471 ‘cess
10:43:10PM GERMANY 10552.19
10:56:55PM US500 2821.87 2811 2797 2765 2842 2867 2888 2899 2819
10:58:48PM DOW 23644 Success
11:00:42PM NASDAQ 8728.12
11:02:19PM JAPAN 19312

20/04/2020 FTSE Closed at 5812 points. Change of 0.45%. Total value traded through LSE was: £ 5,198,867,869 a change of -28.63%
17/04/2020 FTSE Closed at 5786 points. Change of 2.81%. Total value traded through LSE was: £ 7,284,056,629 a change of 24.33%
16/04/2020 FTSE Closed at 5628 points. Change of 0.55%. Total value traded through LSE was: £ 5,858,772,454 a change of -15.73%
15/04/2020 FTSE Closed at 5597 points. Change of -3.35%. Total value traded through LSE was: £ 6,952,759,094 a change of 5.89%
14/04/2020 FTSE Closed at 5791 points. Change of -0.87%. Total value traded through LSE was: £ 6,566,152,057 a change of -6.93%
9/04/2020 FTSE Closed at 5842 points. Change of -100%. Total value traded through LSE was: £ 7,054,916,655 a change of 0%
8/04/2020 FTSE Closed at 5677 points. Change of 0%. Total value traded through LSE was: £ 6,036,851,647 a change of 0%

 

 

 

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