Market Overview: FTSE 100 Futures
FTSE 100 futures went sideways last week at the ATH with a pause bar high in a bull spike. On a HTF, traders expect more legs up, but currently most bulls are sitting on big profits so they will be looking for any reason to confirm the move up is failing. Three big bull bars, so likely more up, but ok to take profits and wait for a High 2.
FTSE 100 Futures
The Weekly FTSE chart
- The FTSE 100 futures went sideways last week with a pause bar high after a strong bull spike breakout and follow-through.
- Last week’s session saw a failed breakout, with the bar closing on its low despite a tail above the high.
- A strong bull breakout with three consecutive closes above a previous high left an open breakout gap.
- All bull bars closed on their highs, indicating traders are comfortable holding positions. The first reversal is expected to be minor.
- We are seeing a five-bar bull microchannel. Expect buyers below the lows of the prior two bars.
- There’s a breakout above both the trading range and a broad bull channel and the moving average, so it’s likely a test back down will be successful.
- Distance from the moving average is growing, suggesting traders might take profits and re-enter nearer to the average.
- The stop is far away now, so traders need to reduce risk. The easiest way is to reduce their position size.
- A second entry short with a potential double top is needed to halt the bullish momentum.
- Always in long, it’s better to be long or flat.
- Expect sideways to upward movement next week.
- Bears see a potential bull breakout of a bull channel that may set up a sell signal in two to three weeks.
The Daily FTSE chart
- The FTSE 100 futures went sideways on Friday with consecutive bear dojis, a tight trading range at the ATH.
- There is a tight trading range on the daily chart, with the last five bars overlapping with small bodies and big tails.
- Six straight bull bars with no lower tails signal strong buying pressure from the open.
- Bull stop far away; some traders are looking for a pullback to get long. But likely one last leg up before support is created.
- Bears see the measured move target and likely profit-taking area but no clear sell signal yet.
- Most traders should look for reasonable stop entries in a place with room to profit. Up here, most bulls are already on profits so it might be better to wait for a pullback.
- When unsure, you can scale in as the trade goes your way.
- Limit-order bears have only one bear breakout below a bear bar, so there is no high-probability scalp yet.
- Trading below the consecutive bear bars next week allows always-in bulls a chance to exit and re-enter later.
- Nnot a great stop entry short with the tails.
- Most traders should be long or flat.
- Viewing as a breakout above a wedge top or a failed double top—traders expect three legs.
- Some traders see the distance to the stop and decide it is easier to short. This is an illusion. The probability is too low to enjoy trading this way for most traders as they won’t sit in to get the RR needed to make it work.
- Sideways to up movement expected next week.
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