FTSE daily analysis

Carol Harmer Charmer Trading

FTSE

Had a growth spurt yesterday reaching 7528....currently lower around 7505 pre open....and around the DP which is at 7503...so we are just above it....obviously we have to wait until we open in 1H but as long as we stay above the 7503/7495 area there will be another spurt of buying pressure...

The bulls are in control...sentiment is up...technical indicators have diverged, so today I think is going to be very important to FTSE....If we cannot hold the designated support levels...the sellers will take advantage and we know that if the market sells off buyers will run for cover, and the market could actually fall quite a lot...Now this doesn't detract from the uptrend...We can see that it is in place and has been all year....

We do expect some backing and filling....but the market made new Yearly highs yesterday, closed higher, and hasn't maintained the gains this morning...so this may be a little sign that the sellers are getting fed up with constantly having to cover at a lost. So lets see if today we can hold this important support...If we fail then there is scope for a move lower with 7445 the immediate target, and possibly down to 7378....

Now if we hold this 7503/7495 support we can go higher and there is no reason why we cannot see 7609 this week which is the med/long term 78.6 fib, and this is an important area...If broken we are going to trade even higher and possibly take out the ATHs at 7900...

Author

Carol Harmer

Charmer Trading

Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.

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