Jump to content

FTSE 100 Technical Analysis: Big Inflection Point Created at Support


Recommended Posts

FTSE 100 TECHNICAL HIGHLIGHTS:

  • The FTSE rushed through but reversed to close above big support
  • Major horizontal support and trend-line are in confluence
FTSE 100 Technical Analysis: Big Inflection Point Created at Support

The FTSE 100 has recently fallen with a lot of momentum, but that came to a pause yesterday with a powerful reversal candle forming. The forming of the candle is one thing, but where it occurred at is another.

There is strong confluent support around 6870/6780, created by the rising trend-line off the March 2020 low and several intermediate-term turning points created since a peak created in January 2021. There were three instances of a low within a 10 handle range of one another.

These were carved out in May, July, and September last year. The multiple turning points on this horizontal line give it a lot of weight as a support level the market should respect. Couple it with a trend-line and proper price action, and you have a line-in-the-sand.

Not saying it will hold for a long time, as we have seen given the nature of this market cycle’s catalyst – a highly unpredictable situation – that exhaustion moves can become even more exhausted. But for now as long as Monday’s low at 6787 holds on a closing basis, then the outlook is neutral to bullish.

We may only see a bounce ensue before more selling occurs, hard to say at this juncture how much the market can rally. If we see a close develop below yesterday’s low, then we will need to respect the fact that a big level of support was broken and run with a bearish bias.

 

FTSE DAILY CHART

ftse daily chart

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst. 8th March 2022. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,131
    • Total Posts
      88,226
    • Total Members
      69,116
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    vinprabhu
    Joined 06/10/22 04:45
  • Posts

    • Stock markets remain in a more bullish pattern after the losses of recent weeks, and Asian indices made some more progress, albeit in a more tentative fashion. Oil prices remain on an upward path following OPEC's move to cut output by two million barrels per day, pushing prices to their highest level since mid-September. Stronger data in the form of the ADP report and the ISM non-manufacturing PMI caused a wobble in stocks, which have rallied on fresh hopes that the Fed will pivot away from its hawkish policy in the near future. Today is a quieter day, with just the UK construction PMI and weekly jobless claims, and the focus is now shifting to tomorrow's non-farm payroll report.   
    • Scallops Chart Pattern are J-shaped, inverted J-shaped, or mirror J-shaped continuation patterns that appear often during trending markets. This pattern has a steep momentum and a rounded bottom or top. The structure is pretty smooth at first, then the market begins to rush up with significant momentum, or vice versa. Scallop patterns appear less frequently than other continuation patterns such as flags or pennants, yet they are among the most stable forms.   Types of Scallops Chart Patterns There are four types of Scallops, two of which suggest bullish movement, while the other two imply bearish movement.   Ascending Scallop Pattern Inverted Ascending Scallop Pattern Descending Scallop Pattern Inverted Descending Scallop Pattern Read More -   Scallops Chart Pattern    
    • For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK. Today’s coverage:   UK outlook revised to negative by Fitch Indices: European stocks to open up after small drop yesterday. Recession fears still haunt mkts after eurozone PMI data yesterday. APAC mostly up   FX: USD holds recent gains. EURUSD pulls down from parity. Rtrs poll says GBPUSD will climb next year BUT could challenge parity later this year. Equities: Earnings – LEVI STZ. CSGN still under pressure as CDS climb again Commods:  Oil up after OPEC+ delivered 2mln barrel cut. Gold bumping up against 50 day sma      
×
×
  • Create New...