FTSE: failed to break the bullish flag pattern
FTSE
No change.. we stayed above the break point of 7480..hitting 7481....FTSE has not broken the bullish flag pattern and as long as this pattern holds we stick to the bullish strategy...Obviously if the US tanks...it will drag us lower... ....Nothing new I can add to what I have already said...we have the bull flag...we will continue to have the bull flag as long as we are above 7509/7497..Upside measured target is 7649..
So for me I think it is still at this point a case of buying into weakness...We are only going to come under increasing pressure if we lose 7480 ..Previous high on April 18th is 7494...look around out Pivot Points and Fibs and we see the S2 @ 7493....the short term 61.8 @ 7490...and the med term 23.6 @ 7497...
So there are quite a few reason why this support area should hold...
I would suggest buying into this designated support zone as stated above...because if you look at what we have done since June we know we are in a short term uptrend, and therefore it is safer to buy dips...
The RSI and ROC are beginning to turn higher, and elven though we have quite a narrow decline the stochastics are below neutral 50% The chart pattern is bullish...The trouble comes with the summer trading markets...Stops can so easily be taken out as the market loses depth and volume....So as long as you are aware that for the time being the trend is up...I will reiterate....you are safer buying into weakness...
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.
