Market Video Overview: FTSE 100 Futures
Tim Fairweather’s weekly report on the FTSE 100 futures market.
FTSE 100 report transcript
Transcript proof learn to comply with…
Hello everybody. And welcome again to a different weekend report. My identify’s Tim Fairweather, and as we speak we’re going to cowl the FTSE 100. So let’s go.
So as we speak we’re wanting on the FTSE 100 month-to-month chart. You possibly can see thus far we’ve bought a really small bear bar and it’s closing proper up close to the excessive, so just a little bit complicated.
It’s a decent buying and selling vary and we’ve solely bought yet another day of the month left on Monday, so I feel it’s going to remain as an inside bar. And you may see we’ve had a really attention-grabbing breakout mode sample. We’ve had an inside bar, an outdoor bar, One other outdoors bar and now an inside bar. So we’re beginning to go sideways and it is sensible however as a result of we’ve had three legs up in a bull channel one two three to a brand new all time excessive and merchants are questioning whether or not shopping for above bull bars up right here remains to be a good suggestion.
So is final month or is that this month a superb sign bar for subsequent month? Properly it’s an inside bar which is a pause And merchants typically watch for extra data. The bulls had a purchase sign bar right here. You’ve bought to interrupt out to a brand new excessive, a pullback, after which a excessive one by what occurred on their entry bar or didn’t actually go above the place they bought in.
And I believe. As a result of we’re nonetheless round that value, it’s not going to be too lengthy earlier than these bulls quit. So that they really want one thing to occur subsequent month to provide them some earnings to get a brand new excessive. In any other case they’re going to exit. Some bulls additionally purchased within the micro gaps and the gaps under, under the low of that prior bull bar or this prior bull bar.
It was above the shifting common. And we stated in a earlier report, or we wrote in a earlier report that purchasing a breakout level right here was a extremely good commerce. And it turned out to be. In case you’re a bear, what do you see? Properly, you’ve bought a bear inside bar and also you’ve bought one other bear inside bar. And so that you don’t actually have a number of cell indicators.
Some merchants will see if this triggers under, however do you actually wish to promote under a bear bar that’s closing on a tie? No, that’s in all probability not an ideal commerce. If something, the perfect the bears are going to get is to get again to the shifting common. So it’s not an ideal purchase above. It’s not an ideal promote under. So we would nonetheless must go sideways.
For the bears, they’ve been promoting above prior highs, and this has been a superb commerce for them. Promoting above bear bars and scaling in, they usually’re getting again to the place their authentic entry factors are. And that’s an indication we’re in a channel, and if merchants purchase excessive, they’ll have extra of their place under to scale in.
Now that there’s a tail on the bar right here, I believe there’s going to be much more sellers above the excessive, betting that they’ll be capable to scalp again. We’re nonetheless at all times in lengthy, so merchants must be lengthy or flat. Nevertheless it appears like merchants are beginning to enter and commerce it extra like a channel versus what regarded like a extremely sturdy breakout.
So subsequent month I’m anticipating sideways to up, however the balls really want to go above that bar, I feel early within the month. In any other case we would simply drift again all the way down to the shifting common. On the FTSE 100 weekly chart, we had a smallish bull bar, however closing on its excessive and shutting above the shifting common.
This can be a good bull sign, significantly in a bull development, we’re above this shifting common, we’re above the 200 shifting common, so we’re positively in a bull channel. The one drawback they’ve is that we’re in a decent buying and selling vary. So we had bull bars up right here. Merchants purchased, that they had to purchase decrease the shifting common, one other bull bar by again to the entry, one other bull bar, in all probability going to deal with it once more.
So we’re working our means up in a channel for the bears. They noticed the parabolic wedge and two legs sideways to down they usually see this as some sort of a wedge prime. One, two, three, or possibly one, two, after which they’ll be on the lookout for a wedge backside to a double prime, what we name a dueling strains sample, on the lookout for a promote down.
Is that this a superb sign bar for subsequent week? Yeah, it’s a superb bull sign bar. The bears triggered a cell under that bar, and now it began to reverse. So if we go strongly above this bar, these merchants have an choice to both scale in or exit, and we might get a giant breakout to a brand new excessive. I stated a number of weeks in the past, the merchants that had been shopping for the garments and shopping for above bars, and that the merchants purchased above this bar right here, and we by no means fairly bought again to their entry.
Now, some would have exited, What I stated was that a few of these merchants would exit. If that’s your entry bar, you’re far-off from the shifting common. You may simply get out and try to purchase decrease. He’s a excessive one. He’s a excessive two. There’s a few choices to purchase later, however I feel we’re going to return up and check this value as a result of the bears haven’t been capable of get something under the shifting common.
So we’re technically nonetheless at all times in lengthy. The cease by no means bought run right here and bulls usually tend to get a brand new excessive stops, transfer up, after which the swing continues. Bears have had a few probabilities to promote under these bear bars. They’d. I collapsed again to the shifting common, however no comply with by way of. And you may see that little arrow I’ve bought there.
I do know it’s in all probability laborious to see in your display, however I’ve that. And that tells me that lower than 5 % of the bar is under the open. That’s an indication of urgency. The second that bar closed, merchants purchased it. And I feel that’s as a result of merchants had been questioning whether or not this was going to go down additional.
This cease entry triggered reverse. They needed to scale in. So bears had been now not promoting right here. Bears had been shopping for again their shorts. So I feel we’re going to run the stops on these bears in addition to these ones. So at all times in lengthy on the month-to-month and at all times in lengthy on the weekly chart. So sideways to up anticipated, we’ve bought a sign bar on the weekly chart.
So I feel we’ll be hovering round there and the shifting common and persevering with this kind coaching vary, on the lookout for breakout. Thanks very a lot for watching. My identify’s Tim Fairweather and I’ll see you subsequent week.
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