Short Position
RSI over bought, possible double top formation.
FTSE 100rallied initially on Tuesday, but then turned it right back around, only to find buyers again. I think there is significant support at the 7700-level underneath, and I think that the market will continue to find that area to be interesting. The GBP/USD pair broke down significantly and the Forex markets during the day, and that has money looking to the London stock exchange. I believe that the FTSE 100 continues to be very bullish overall and breaking above the 7700 level is of course a very strong signal, and I think that the market is ultimately going to go looking towards the 7783 handle.
If we do break down below the 7783 level, I think the market could go down to the 7257 level. That’s an area that has been supportive in the past as well, something it’s only a matter of time before we get involved to the upside. I like the idea of buying and bits and pieces and adding as we go along. though this idea suggest an interest in shorting, as I believe that the 7257-level underneath is the “floor” in the market. If we were to break down below there, then the market would unwind rather drastically. With that being the case, I would be very short of the market at that point. However, that seems to be very unlikely to happen.
FTSE 100rallied initially on Tuesday, but then turned it right back around, only to find buyers again. I think there is significant support at the 7700-level underneath, and I think that the market will continue to find that area to be interesting. The GBP/USD pair broke down significantly and the Forex markets during the day, and that has money looking to the London stock exchange. I believe that the FTSE 100 continues to be very bullish overall and breaking above the 7700 level is of course a very strong signal, and I think that the market is ultimately going to go looking towards the 7783 handle.
If we do break down below the 7783 level, I think the market could go down to the 7257 level. That’s an area that has been supportive in the past as well, something it’s only a matter of time before we get involved to the upside. I like the idea of buying and bits and pieces and adding as we go along. though this idea suggest an interest in shorting, as I believe that the 7257-level underneath is the “floor” in the market. If we were to break down below there, then the market would unwind rather drastically. With that being the case, I would be very short of the market at that point. However, that seems to be very unlikely to happen.
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