FTSE100 Candlestick TA Last session - Inside range day (ID/NR4), closing below previous close and today’s open.
FTSE100 3d Swing TA Last session – Close between recent extremes 4518 and 4359 leaves swing direction unclear.
FTSE100 2d Swing TA Last session – 10/06 remains swing high, close between extremes 4409 and 4506 leaves swing direction unclear.
General TA Notes
Medium-term trend continues sideways, with price just above mid-point of range. Resistance in the 4485-4521 range continues to overshadow. Next resistance above would be 4640 area from Nov/Jan highs. Gap 4294-4317 (matching Jan and Feb highs) should offer support but not tested since 27/05: about to be reinforced by entry of 50EMA. Ascending triangle from 26/05 with head at 4520 continues to develop, with apex at 03/07, 28d from base on 26/05, suggesting upward break-out around 22/06. P&F chart still shows small-scale triple top but no entry signal. 20RSI showing neutral and recently rising with price, which might be bullish. Line chart study shows bullish flag formation with 3 successive higher highs and 4 higher lows. Breach of 4521 would mark 20d high. Week’s range inside, with last 6 weekly closes showing <0.5% fall. Constriction of daily and weekly volatility signposts likelihood of break-out.
Dow – Lower range day, making 11/06 swing high if descent continues. Price closed above previous close and day’s open, near high of session. 200EMA presented resistance this week. Dow and S&P prices and 50EMAs unable to breach 200EMA, leaving many investors on sidelines.
On the chart the ascending triangle seems to be fast approaching crisis point. The problem is that these things are so widely recognised and traded that they can be 'traded out' - each successive attempt at break-out being sold into aggressively, each possible break-down being bought upwards. Sometomes these patterns collapse or just peter out. If the S&P can re-locate above the 200EMA this should bring in a lot more buying volume. Failure would be equally bearish.
Short-term, should be a good bullish start Monday, the Dow having risen nearly 0.5% after we closed yesterday.