Do you think the FTSE 100 Index will correct when it hits 6000 Points ?

[Bristolguy]

Hey,

Still pretty new to trading but the FTSE 100 has had a very nice run as of late, i dont think it will hold 6000 points. Surely there will be a correction and some money to be made by shorting the index ?

Any ideas welcome from people who know what they are doing ?

Cheers

 

[Mornington Crescent]

newbie eh ?

a bit of a daft question
what do you mean by 'correction'

plenty of corrective moves every day

so, what's your time frame and what size of correction did you have in mind

or are you asking if 6000 is the final top

you need to be a lot clearer in your thinking

 

[Bristolguy]

newbie eh ?

a bit of a daft question
what do you mean by 'correction'

plenty of corrective moves every day

so, what's your time frame and what size of correction did you have in mind

or are you asking if 6000 is the final top

you need to be a lot clearer in your thinking

Yeah am a complete newbie, but it seems every time the FTSE reaches a new high it retraces and was thinking of doing a trade and shorting at 6k. I suppose due to my lack of knowledge it could be another trade doomed from the start

 

[Mornington Crescent]

it is never worth trying to second guess what the market is going to do unless you have something more substantial to go on

but keep it simple

"every time the FTSE reaches a new high it retraces"
remember you only know where the high was with hindsight

 

[Dentalfloss]

dont call the top yet

 

[Bristolguy]

Cheers guys il be watching.

 

[Dentalfloss]

you will have to take out 5930 area first.ie 5930 should act as resistance.
then there is a strong support at 5900

 

[Dentalfloss]

ftse100.approx 1 month of data
look at the uptrend that started on 1st dec...green line
hit res on 16 dec.then the latest pullback
10 min data input.12 point box size
at this point the uptrend is strong...xmas rally
keep an eye on the support areas ,if it turns down
5900 was the res for a few days.so it must be respected as a strong supp area

imho

 

[Dentalfloss]

bristols...
you just cant call markets like that...well,i suppose you can,but you are living dangerously
you need to see from a technical aspect that a point was a acting as a resistance....then the whole world sees that it has lost strength..until that time....keep out
let someone else blow their brains out.you can sit and laugh at them

 

[Bristolguy]

Cheers man appreciated. Always value your input

 

[Bristolguy]

I really need to start listening to my thoughts sometimes, there was at present a 60 point gain to be made :-(. O well there is always next time.

 

[Dentalfloss]

chart i posted was on the 22 dec,at that time there was no signal to go short.
here is an updated chart..note how 6012 area was the resistance on 30 dec.support was at 5988 and 5980 on that day.then on 31st dec,the break below 5980 ocurred.

 

[Dentalfloss]

bristols..agree w ith you " always listen to ur own instincts"
however,on this trade,you would have hung around for over a week with virtually no profit..but the end result would have been good.i dont have the patience to hang around for this amount of time.i did trade it,once i saw the resistance.
just my two cents worth.you did have a lead.the dax tanked a bit on 30/12

 

[Bristolguy]

Yeah i know of course i should have tracked it a bit more and got in at the resistance level. I did however get in at the bottom, i went long at 5920 and got out and 5940 for a 20 point gain so got something from it.

 

[Dentalfloss]

Yeah i know of course i should have tracked it a bit more and got in at the resistance level. I did however get in at the bottom, i went long at 5920 and got out and 5940 for a 20 point gain so got something from it.

nice one
keep up the good work

 

[leonarda]

Yeah am a complete newbie, but it seems every time the FTSE reaches a new high it retraces and was thinking of doing a trade and shorting at 6k. I suppose due to my lack of knowledge it could be another trade doomed from the start

trying to pick tops is I am afraid a losing strategy, more often than not it will go a lot higher than you think...!
A much better, but illogical strategy to newbies, is to buy high and sell higher...but personally I would not try it on indicies, they are too volatile. A lot easier with less volatile things like Stocks.