Market Overview: FTSE 100 Futures
The FTSE 100 futures market went sideways last week with a second consecutive bull bar above the moving average. But it’s a doji. The bulls are trying to break out of this tight trading range. The channel is continuing, and that means limit order traders are doing well. Traders who buy above or sell below anything need to scale in at a larger position. The bulls still have both moving averages and breakout gaps.
FTSE 100 Futures
The Weekly FTSE chart
- The FTSE 100 futures market went sideways with consecutive bull bars last week with a bull doji.
- A doji is a pause. It means bears were selling above the high as much as bulls were buying, which is common in a tight trading range.
- The bulls closed within the last week, which suggests bulls are not willing to buy strongly above the high.
- The bulls have a small gap open above the bear doji from the prior week, and gaps are a sign of strength.
- Limit order bulls want prices to come down and fill them closer to the moving average.
- It’s tricky for bears. They have a big signal bar as well, and putting a stop above that bar is a skunk stop. So bears have a stop above the high.
- Bulls have the same issue with a far-away stop, but at least the MA is in the way for some protection.
- The bears did well to close the breakout point, which kept the channel intact.
- Traders are better off waiting for a good stop entry buy above a decent bull bar above the moving average.
- It’s a weak signal for next week, but I wouldn’t be selling above that bar.
- Always in long, to expect sideways to up.
- I’ll be looking to buy below last week if I can.
The Daily FTSE chart
- The FTSE 100 futures market went higher on Friday with a good bull bar closing near its high so we might gap up on Monday.
- The bear’s spike failed to get a strong second leg. If a bear tried to scale in at 50% of higher, it would not be stuck.
- Other bears sold under the second entry short on Tuesday and are currently in their trade.
- It is not clear whether they got out breakeven. It is better for bulls if they are stuck.
- There is a strong bull microchannel, and the bulls bought below the low of the last strong bull bar. Their target is the high price of this trading range.
- But it is not clear. I think the bulls from the prior breakout who bought high and got trapped used last week to exit that trade. Now, new bulls are back in.
- Bears have been making money selling above new highs and scaling in.
- This is a triangle shape, with a higher low and lower high without a clear breakout.
- When it does break out, it should pull back, giving trend traders a chance to participate and profit from it.
- I like the gap to the MA to enter a long trade. I want to buy below something and scale in lower.
- Other bears see the bear inside the bar as NOT being the second leg, and they are probably right. They might need a second leg broken up into parts.
- It’s always in long, so expect sideways to up next week.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
