Market Overview: FTSE 100 Futures
FTSE 100 futures moved higher last week with a bull doji and now two bull closes above the MA. We are still at the apex of a triangle, and BOM will finish soon – or so traders think. Bulls have a small pullback trend on the daily chart, and buyers are likely below these consecutive bull bars. Bears might not sell until we get back to the high of the last sell climax.
FTSE 100 Futures
The Weekly FTSE chart
- The FTSE 100 futures was a bull doji and now consecutive bull closes above the MA.
- It is the minimum for always in long, but the signal bar is not strong. Some traders will wait for a stronger setup.
- The bulls see a triangle, breakout mode (BOM) and are looking for the market to indicate where the breakout will be.
- There is a credible triple bottom, a form of a wedge, so there should be two legs sideways-to-up.
- But the bears see lower highs, so a triangle in a bear trend after a LH MTR.
- How can both traders be right? Because it is a trading range, and the stops have not been hit yet.
- The bulls bought the HL DB, although the signal bar was weak. They see a BO and pullback and now a FT bull bar. So, two good bull closes, although small bars.
- The bears saw a wedge bear flag in September, sold the second entry short and had to exit, disappointed they didn’t get a new low.
- The bears probably just got out, so the bulls might get one more leg. But there have been very few stop entries, so expect most traders to enter with limit-orders on pullbacks.
- If you look left, each stop entry was a climax and failed shortly after. The bulls want it to be a steady breakout to have a chance to go further.
- Target is the high of the last sell climax and bear trend line.
- It is a bull reversal and a breakout above a bearish outside down bar, so the bears that sold above made a scalp and probably got out.
- Expect sideways to up next week.
The Daily FTSE chart
- The FTSE 100 futures was a bull bar with a sizeable tail above, so there were sellers at the end of the week.
- It is a breakout above a prior high, up in the top third of a trading range.
- The bulls see a small pullback bull trend. Every bear bar has been a good place to buy.
- The bears see a weak bull channel and expect it to soon morph into a broad bull channel, a type of sloped TR.
- The bulls want a consecutive good bull bar. They want to test the high of the last sell climax and the MA, where bulls gave up before.
- The bears want to trigger the stop entry bulls above Friday and reverse down. It would be a Low 2 sell setup.
- But the bears need to break a trendline first. Otherwise, the Low 2 will become another buy setup.
- The bulls who bought from the Friday previous had top sit in drawdown all week, and finally, they got some profits one week later. That means bulls are not that strong.
- There are probably more buyers under this bar and near the MA.
- It is a bullish bar, so it is a buy signal, but it is a big tail, so it’s weaker than it could be. There’s nothing to sell here for bears yet.
- I’ll watch to see if they can make 1:1 still or exit early next week.
- Expect sideways to up next week.
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