21 Nov FTSE 4 Hourly Technicals To Watch Before Falling In Love With The Short Side!
Isn’t it funny how Weeks have gone by and I’ve struggled to find anything worthy of posting, then all of the interesting set-ups arrive at once!
So, just before signing off for the evening I just wanted to present this FTSE 4 hourly chart.
It can be mentally challenging to enter trades like this when the press is plastered with bearish news, but the last couple of years should have conditioned us to ignore the news because we all know, no matter how bad the news, if the Indices want to rally, they will!
It’s not necessarily an imminent trade, but FTSE is at a level that has the potential to divide the bulls and the bears, so if we do see strength when this level is re-tested in the morning session, we could look at trading the day with a bullish bias. Alternatively, if we slice straight through this level, we could look to enter short on a subsequent back test.
Having seen a descending triangle break through support (albeit through cheating by gapping down), the back test of this longer term falling trend line may give us the beginning’s of a bullish falling wedge….. and remember, falling wedges aren’t bullish until price has broken out of them, so, until that time comes, the sensible technical trade is to short touches of the right hand-most falling trend line.
Not forgetting that the 61.8% Fib retrace is an equally important area to watch. Whatever happens, we are most certainly at an inflection point right here: