#FTSE #Brent It’s unusual, in these confused days, to stagger up to a Friday with some optimism but despite negative news from so many sources, the FTSE is somehow managing to look positive. Perhaps it’s related to the price of Brent Crude as the black stuff looks capable also of some near term price gains where above 44.6 dollars, the immediate target, should potentially signal a cycle commencing toward the 46.8 dollar mark.
As for the FTSE, with the index managing to close Thursday around the 5980 level, the market closed at the highest level in 14 sessions, officially ticking the box for a “Higher High”, thanks to the all important market closure level being comfortably above any intra-day level since September 21st. From our perspective, this is quite a big deal and tends suggest the FTSE shall need some pretty negative news to derail a sense of hope in the days and week ahead.
Near term, things promise to become interesting if the UK index wanders above 6012 points. This calculates as capable of triggering a movement toward an initial 6044 points with secondary, if exceeded, working out at 6095 points. In fact, while we do not expect movement in a single day, longer term 6175 appears to be exerting an attraction for the days ahead. If feeling insanely brave, the tightest stop in this scenario looks like a dreadfully wide 5929 points!
Our reasoning for such a ridiculous stop loss level comes from the optics of the last week as 5929 has made an appearance twice as a day low. Below 5929 suggests the possibility of reversal to an initial 5893 points with secondary, if broken, calculating at 5859 points.
As the chart inset shows, Thursday was also the first time the FTSE has managed to close a session above the Blue downtrend which commenced, when everything started to go horribly wrong in February. It’s officially “fingers crossed” time
|Time Issued||Market||Price At Issue||Short Entry||Fast Exit||Slow Exit||Stop||Long Entry||Fast Exit||Slow Exit||Stop||Prior|
8/10/2020 FTSE Closed at 5978 points. Change of 0.54%. Total value traded through LSE was: £ 4,506,090,091 a change of -9.79%
7/10/2020 FTSE Closed at 5946 points. Change of -0.05%. Total value traded through LSE was: £ 4,994,944,768 a change of 3.84%
6/10/2020 FTSE Closed at 5949 points. Change of 0.12%. Total value traded through LSE was: £ 4,810,400,259 a change of 20.66%
5/10/2020 FTSE Closed at 5942 points. Change of 0.68%. Total value traded through LSE was: £ 3,986,790,747 a change of -6.97%
2/10/2020 FTSE Closed at 5902 points. Change of 0.39%. Total value traded through LSE was: £ 4,285,372,497 a change of -12.92%
1/10/2020 FTSE Closed at 5879 points. Change of 0.22%. Total value traded through LSE was: £ 4,921,284,024 a change of -5.87%
30/09/2020 FTSE Closed at 5866 points. Change of -0.53%. Total value traded through LSE was: £ 5,228,309,512 a change of 10.67%
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