The FTSE had a very poor session yesterday as we sold off from the open to post a low for the day at 5945. We did recover a touch for the close which was almost bang on the 5960.5 support. We have a new Trend Resistance line that coincides with our 38.2 Fibonacci Retracement level of the move up from the 17th of March at 6019. Unless this can be re taken quickly then there will be more dark times ahead here with the next downside target at 5832. Its a case here of staying short if you are already that way with a profit stop on a breach of the above mentioned resistance. Fresh shorts here may be dangerous as we have done quite a bit of work to the down side.
Indicators in Play
Trend Resistance Lines are probably the most basic and easy to understand tools in Technical Analysis. Its just a matter of joining lower highs together with two and some prefer three points of contact.
Summary
Everything has been pretty much covered in the opening comment with our Trend Resistance line coinciding with our Fib level. Overall things look bleak but we are cautious at the moment with the amount of work we have already done.
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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