A look at the technical picture for the FTSE100.
Top of the market: 6950
Recent low: 3277
Current Level: 4320 (for arguments sake!)
Drop from high to low 3673 points, 52.84%
Rise from low to current level 1043 points, 31.82% recovery from lows, 28.39% of the drop
Fibonacci retracement levels from the lows
33% - 4489
50% - 5509
66% - 5701
4 Year Chart
We have to go back to a 4 year chart to get the top of the market, such has been the bear run in the FTSE.
The overall picture looks positive, after some fairly savage drops the market has gone through of slow, low volatility recovery, broken the major down trend at 4190/4200 and broken above the first major resistance level at 4225.
To the upside it looks like fairly plan sailing up to the 4450/4500 level which co-incides with the first fib 33% recovery level at 4489. I suspect this will be a major test of the real willingness of this market to get back inot a serious long term bull run. The next obvious overhead resistance is the 'magical' 5000 level.
2 Year Chart
Here we can see the next levels more clearly and have a better view of the current uptrend.
The first concern to the downside will come if the recent lows at 4160 are broken, however, the major concern and definite return to a bear market will come if the psychological 4000 level goes.
1 Year Chart
'Zooming in' a bit more, shows the significance of 4225 as a resistance level - should now be major support and the break today above 4300 into clear waters for the moment.
It also shows the fragility of the current bull run, inching up the trendline.
All in all a positive picture, but with some fairly significant levels yet to come before it can be considered out of the woods, not least of all the physical resistance around 4450/4500 combined with the technical 4489 retracement level.
Top of the market: 6950
Recent low: 3277
Current Level: 4320 (for arguments sake!)
Drop from high to low 3673 points, 52.84%
Rise from low to current level 1043 points, 31.82% recovery from lows, 28.39% of the drop
Fibonacci retracement levels from the lows
33% - 4489
50% - 5509
66% - 5701
4 Year Chart
We have to go back to a 4 year chart to get the top of the market, such has been the bear run in the FTSE.
The overall picture looks positive, after some fairly savage drops the market has gone through of slow, low volatility recovery, broken the major down trend at 4190/4200 and broken above the first major resistance level at 4225.
To the upside it looks like fairly plan sailing up to the 4450/4500 level which co-incides with the first fib 33% recovery level at 4489. I suspect this will be a major test of the real willingness of this market to get back inot a serious long term bull run. The next obvious overhead resistance is the 'magical' 5000 level.
2 Year Chart
Here we can see the next levels more clearly and have a better view of the current uptrend.
The first concern to the downside will come if the recent lows at 4160 are broken, however, the major concern and definite return to a bear market will come if the psychological 4000 level goes.
1 Year Chart
'Zooming in' a bit more, shows the significance of 4225 as a resistance level - should now be major support and the break today above 4300 into clear waters for the moment.
It also shows the fragility of the current bull run, inching up the trendline.
All in all a positive picture, but with some fairly significant levels yet to come before it can be considered out of the woods, not least of all the physical resistance around 4450/4500 combined with the technical 4489 retracement level.
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