Daily Forecast - 15 October 2014
Ftse December contract
FTSE continued lower & unexpectedly crashed through crucial support at 6255/45 to hit all our targets down to 6135/30. We bottomed exactly here at 6124 & there is a very good chance we have seen the low for the 4 week sell off. *It is now too risky to run shorts.* I expect a strong recovery in to the end of the month before another big drop in to year end. We switch our strategy to buying in to weakness. Today we should start the recovery & need to beat immediate resistance at 6220/25 to target 6275/80. We should struggle & a high for the day possible but above targets strong resistance at 6305/10. Exit longs & try shorts with stops above 6330. However be ready to go with a break higher using 6310/05 as support for a move towards 6375/80.
Buy in to any weakness down to 6135/25. However be aware that we have 200 week moving average & important longer term Fibonacci support at 6095/85 for another excellent buying opportunity. Only a close below 6060 tonight turns the outlook negative again & could send prices in to another free fall.
The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.
Recommended Content
Editors’ Picks
AUD/USD extends its upside above 0.6600, eyes on RBA rate decision
The AUD/USD pair extends its upside around 0.6610 during the Asian session on Monday. The downbeat US employment data for April has exerted some selling pressure on the US Dollar across the board. Investors will closely monitor the Reserve Bank of Australia interest rate decision on Tuesday.
EUR/USD holds positive ground above 1.0750 ahead of Eurozone PMI, PPI data
The EUR/USD trades in positive territory for the fourth consecutive day near 1.0765 on Monday during the early Asian trading hours. The softer US Dollar provides some support to the major pair.
Gold holds below $2,300, Fedspeak eyed
Gold price loses its recovery momentum around $2,295 on Monday during the early Asian session. Investors will keep an eye on Fedspeaks this week, along with the first reading of the US Michigan Consumer Sentiment Index for May on Friday.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.