Today we are looking at the FTSE, which managed to reach and just surpass our 6090 target from the 28th of March. We do have Dark Cloud Cover, which normally forecasts stormy times ahead. On this occasion though, the probability is that the sharp decline from yesterdays high was more to do with profit taking upon reaching a target. With this in mind we are siding with the Bulls and will be looking to buy dips. Wednesdays low at 5941.5 will be the level we are watching as a warning that this strategy is faltering.
Indicators in Play
Dark Cloud Cover is a bearish reversal signal.
In an upternd a long Green candle is followed by a red Candlestick that opens above the previous days high and closes well into the body of the preceding candle.
Summary
Yesterdays Dark Cloud Cover suggests we may see a further pullback. However, we are still encouraged by a succession of higher lows. Our Bullish stance will be reinforced greatly with a close above yesterdays high at 6095.5. Only a print below our last dip at 5832 would cancel this sentiment.
David has been
analyzing and trading the worlds financial markets for the past 25 years. After an initial grounding with Mercury Asset Management and Warburg Securities he went on to set up his own brokerage operation in London. Since then he has appeared regularly on Bloomberg Television and been involved in providing analytics on behalf of some of the worlds major exchanges. He is also a member of the Society of Technical Analysts.
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