The FTSE hovered above our key 5832 support on Monday and Tuesday which had us wondering if this level was in fact going to be the point where the Bulls make a stand . Well yesterday we were given the answer as the Bears flexed their muscles once again taking us to a low of 5711.5. If we did attempt a bounce we have a new Marabuzo line at 5787 and also some intra day resistance below this at 5769.5 as shown on our smaller 30 minute chart. As far as support goes there is little to mention of note until way down at 5410.5, our low from the 17th of March.
Indicators in Play
A Marabuzo line is the 50% point between the open and close on a large range day where these two points are at or close to the days extremes.
Day traders often go down through the time frames to find intra day resistance and support that do not show up on their daily charts. This can give good entry levels to add to a position or warn that the picture is changing. This works just as well going up to weekly charts to keep focus on the bigger picture.
Summary
Things took another push down yesterday and it is hard to see where any good news will come from. If we did try to bounce we have intra day resistance at 5769.5 followed by our Marabuzo line at 5787. Our old support at 5832 is now very strong resistance. 5410.5 is the longer term Near objective.
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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