Market Overview: FTSE 100 Futures
FTSE 100 futures went sideways last week with a trading range bar in breakout mode. Small body, hovering above the MA, so traders bought support and likely expect us to go sideways to up from here. Bears did what they needed to, which was to close the gaps. But more likely, we run the bear stops above these weak sell signals.
FTSE 100 Futures
The Weekly FTSE chart
- The FTSE 100 futures last week went sideways in breakout mode with a bear doji and a small body.
- All the bars overlap, meaning stop-entry traders cannot make money.
- The bars are alternating, which means traders think the price is about right.
- The bulls see a TTR right above support—the 20 MA in a bull channel. We just tested open breakout gaps, and so far, the test has been successful.
- The bulls want to move sideways after trapping bears below that sell signal.
- The bears saw the good sell signal, but it was in a bad location, just at support and open gaps below.
- Strong bears would scalp to close the gap and then become bulls.
- The bears got a large distance below the bar, so there is possibly a further scalp down. I won’t be taking it. If the setup appears, I want to be flat for a long trade.
- Stop-order traders who bought above the prior week had to buy more, a measured move that reduced the size of the bar.
- Limit order traders sold above that bar and made money. But we will eventually break out, making that strategy difficult for beginners.
- It is a bad sell below, so there are probably more buyers above.
- Expect sideways to up next week.
The Daily FTSE chart
- The FTSE 100 futures went sideways on Friday after strong moves up and down in breakout mode.
- We were hovering around the middle of a tight trading range, a triangle, and just returned to the apex.
- 50% of the time, a triangle breaks out the wrong way.
- The bulls see the strong signal bar, but the target for 2:1 failed.
- It did close the gap above, which is a strong target.
- We came all the way back to test the entry point of that decent buy signal.
- The bulls want a double bottom, a higher low to convince traders to buy above.
- The bears see a lower high double top and a strong bear spike down to the 200 MA.
- The bears want it to be the start of a spike and wedge channel down. But in a HTF bull trend, it is more likely to find support at the 200 MA, especially the first time it is touched.
- Stop-order traders have a tough choice here. Bull bar, so weak sell above. Tail above so also weak buy above.
- The bulls have a small gap below, so buyers around there probably expect the gap to close.
- If the bulls can keep it open, that is a sign of strength.
- Limit order bulls are low trying to build positions long.
- We will see if the sellers above that last strong bear bar show up next week.
Market analysis reports archive
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