FTSE
Just an observation regarding markets. A Return to fundamentals.Ideas:
-Buying high to sell higher may work, but chances for corrections in the next years are likely.
-Selling or shorting may be unadvisable. Despite the chance of corrections, shorting behavior is similar to bubble behavior. As always, there is a likely chance there are shorters who will have losses.
-Selling actual stock positions that have been bought lower, here, is generally a good idea. Not having exposure, or having small exposure, at this moment in time, is likely good.
Despite the chart idea to buy above 2700 and sell at 2900, with a stop loss at 2650, there is a chance of a correction as soon as it reaches 2730-2740 levels.
A move towards 2400 for DOWG is likely this year and possible in the next years.
The 'where and when' spots to short are generally harder to guess.
If it closes at year end below 2450, the next years are likely to be negative.
Any down move below 2350 can send DOWG to 2250 and 2200 respectively.
Corrections touching 2000 and below in the next 5-10 years can happen, though unlikely.
What the white background says:
---To quote:
Lows and restructuring in the year 2018 and the next couple of years.
Two potential years with negative corrections on the market.
A correction in 2017 is possible, more frequent corrections are likely to happen in the years ahead.
Corrections will continue to happen until there is a just system in place.
The alternative is delays and further bubbles.
Changes from within big companies are highly improbable, only companies with hedging and wisdom will stay.
Companies that built themselves on bubbles will very likely pop themselves, just as they bubbled themselves.
---End quote.
Between Currencies versus Commodities, there may be a temporary safe haven in Commodities.
Lack of liquidity, medium of exchange, bartering can be troublesome obstacles in commodity area, if some currencies fail, due to some government defaults(if they happen).
People that actively participate in 'governments' will be actively influenced by 'government dogma', that is, 'intentional ignorance of fundamental facts'. Ideologies not backed by good fundamentals ultimately fail(when even belief is strong), because lack of fundamentals to sustain 'believers' that have forgot fundamental logic on how one lives and thus, simply, experience forced awareness to fundamental facts. Fundamental facts are that living is done by practicing agriculture(sometimes systems that are immune to harsh environments, see aquaponics), and not using derivative means to live(getting a job in companies built on bubbles) and by practicing wisdom, through studying, (and not sins that pushes one away from fundamental facts), and then after that, practicing what one has learned, but under God's Law(Noahide Laws).
en.wikipedia.org
UK FTSE remains heavy at current levelsThe UK FTSE100 Index is finding difficulty maintaining higher levels as negative divergence unfolds on weakening momentum studies. The Tension Indicator (not shown) is also showing signs of negative divergence as it, too, turns down.
Investors are expected to continue reducing positions.
A break below the 7255.78 low of 27 March is highlighted, with the 7192.94 low of 24 February to then attract. Further slippage will open up critical support at the 7093.57 low of February.
A break beneath here would turn investor sentiment outright bearish, and confirm a more significant bear trend as the fall from the 7447 high of March gains traction.
An unexpected break above 7447 would delay lower levels, but should find difficulty clearing the 7500/11 barrier.
Two bearish scenarios for the FTSEUK100 (FTSE) has climbed above it weekly trading channel again this week.
The losses that we saw about a month ago almost erased completely.
As I see it, there are two bearish scenarios that I find interesting in UK100:
1) False Break scenario - Will be triggered if UK100 will decline and close below 7200. Currently we see a daily double top pattern near 7300, but as long as the price is above the channel's top the False Break scenario isn't in play
2) If UK100 will advance about 4-5% higher, it will complete a bearish Butterfly pattern. That will be between 7600-7700. With the bullish sentiment that we currently see in the markets no one will be amazed to see UK100 rallying 4-5% .... despite the amazing run it had already.
BTW we have a similar situation in GER30 near 12,000.
If you are looking for bearish opportunities - I just provided 2 for you.
*Make sure you do your own analysis before making any trading decision
UK FTSE100 coming under selling pressureThe UK FTSE100 Index remains strong, but gains are expected to continue to prove difficult to maintain.
Overbought studies and negative divergence on the bearish Tension Indicator (not shown) are adding pressure to bullish sentiment, with any initial tests of the 7500/11 barrier to prove difficult to sustain.
Risk/reward is for a short-term corrective pullback, but improving background studies should limit downside tests.
Support is at congestion around 7350 and extends to the 7263.62 low of 9 March. Any deeper reactions need to stabilise above the 7192.94 low of 24 February to keep bullish sentiment intact.
A close beneath here, if seen, would add extra pressure to price action and open up critical support at the 7093.57 low of February.
FTSE 100 is chipping away at the key Fib expansion hurdleThe mining heavy index is flirting with 7436 (100% Fib expansion level). Also take note of the potential bullish break from the expanding triangle formation.
I say potential because a breakout would be confirmed on March 31.
Rejection at 7436 followed by a close on March 31 below 7263 would signal correction.
UK FTSE100 to find difficulty sustaining further gainsThe UK FTSE100 Index is regaining higher levels.
Prices have posted a close above the 7354.14 high of January, suggesting potential for further gains towards the 7465, (38.2%) Fibonacci projection of the november-January rally. However, studies remain mixed and are beginning to show negative divergence, highlighting continued profit-taking pressure and risk of a corrective pullback.
A close below the 7192.94 low of 24 February would add pressure to price action, but a further close below the 7093.57 low of February is needed to turn sentiment negative, and confirm a deeper, more significant fall.
A close above psychological resistance at 7500 would further improve price action, as investors continue to increase exposure to UK equities.
UK FTSE100 expected to find difficulty sustaining higher levelsThe UK FTSE100 Index is finding difficulty maintaining the bounce from the 7093.57 low of 2 February.
Prices are falling back from the 7329.56 high of 20 February, as short-term studies turn bearish and the Tension Indicator (not shown) continues to weaken. A pullback towards 7093.57 is looked for, whilst a close beneath here will signal a deeper reaction, as investors move to a neutral stance.
Subsequent focus will turn to the 7016~ Fibonacci retracement and congestion around 7000.
An unexpected close above 7354.15 is needed to negate downside tests, and confirm continuation of the broad 2016 rally towards the 7395, (161.8%) Fibonacci projection of the October-November fall.
FTSE100 - ShortPotential for a FTSE100 short position. All time high for this index with price resisting to break 7350.00 area in january 2017. Channel forming in 2017 with prices again trying to break the 7330 area. Number of spinning tops/doji candles on the 4 hour timeframe and ma looking to cross back hinting a reversal and price drop down to 2017 support @ 7100 region.
UK FTSE100 gains to prove difficult to sustainThe UK FTSE100 Index is extending the bounce from the 7093.57 low of 2 February.
Rising daily studies suggest further short-term gains, but falling weekly stochastics and a weakening Tension Indicator (not shown) suggest any immediate tests of critical resistance at the 7354.15 high of January should be treated with caution.
In the coming weeks, risk/reward points to a corrective pullback, with a close below 7093.57 opening up the 7016.50, (50%) Fibonacci retracement of the December-January rally and congestion around 7000.
A further break would turn investors neutral once again, as deeper reactions target the 6936.75, (61.8%) Fibonacci retracement. An unexpected close above 7354.15 is needed to negate downside tests, and confirm continuation of the broad 2016 rally towards the 7395 Fibonacci projection.