Market Overview: FTSE 100 Futures
FTSE 100 futures went higher last week in a bull breakout and a follow-through. Bull breakouts on the monthly, weekly and daily chart after bears gave up defending the top of the trading range. Climactic on the daily chart so we should see some profit-taking soon, but nothing to sell, so traders should be long or flat.
FTSE 100 Futures
The Weekly FTSE chart
- The FTSE 100 futures went higher last week, with a big bull bar closing near its high.
- It is the third consecutive bull bar above the moving average.
- There is a small micro gap between the bars, so it is a bull microchannel, and most traders will expect the first reversal down to be minor.
- The bulls broke out of a trading range and will look for a measured move of the range.
- After such a strong breakout, the bulls want another higher low to move their stop up.
- But because last week was so strong, some bulls will start to take profits and look to reenter after two legs sideways.
- The bears see a broad bull channel and profit-taking at the highs. They may have sold the prior high of the trading range and need it to return to the highs to exit breakeven on their first entry and a profit on their second entry.
- Always in long, so traders should be long or flat.
- Expect sideways to up next week.
- Bulls have open breakout gaps, which is a sign of strength.
- They will likely get a measured move as long as they can keep the price from overlapping the prior ATH.
- But the market has been in a trading range for a long time, so deep pullbacks can occur.
- The next buy opportunity is likely below the low of the current bar.
The Daily FTSE chart
- The FTSE 100 futures went higher all week, with 5 bull days in a row.
- The bulls see an attempt at a wedge top, or a double top and we broke above so, so a measured move up is likely.
- When the bears try and fail to scale-in higher and turn the market down, they give up, and we race to the next target.
- There are many possible candidates for a give-up bar.
- More important is for traders to look for reasonable stop entries and follow the stronger breakout.
- Bears had a weak reversal at the end of April, and likely because the monthly chart has a breakout and follow-through, the daily traders were not likely to fade it.
- It is now climactic and unlikely to continue like this. The stop is far away, so bulls will likely look for a reason to reduce their risk. The easiest way to do that is to take profits.
- Always in long, so it is better to be long or flat.
- Expect sideways to up next week.
- There is nothing to short here. The bears just gave up, so they will not look to sell until a couple of legs up or reversal bars get triggered.
- Bulls can exit below a bear bar, closing below its midpoint. Or exit a scalp size below any bar.
Market analysis reports archive
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