Short term
Trade view / 31 May 2016 at 22:48 GMT

Bearish outside day signals reversal for FTSE 100

Director / PIA-First Limited
United Kingdom
Instrument: UK100.I
Price target:
Market price:

Our medium term outlook remains bearish despite the recent correction from February 11 swing low. The month of May ended stronger after the FTSE drifted sideways for the most part.
Brexit uncertainty continues to impact the FTSE, and act as a driver on the UK index.

Tuesday's bearish outside day in the FTSE signalled a reversal in price action, after prices failed to challenge the monthly high for May. The 61.8% Fibonacci resistance provided an additional barrier. We expect an extended move lower before we find buying interest.

We look to set shorts to target better support levels below whilst placing the stop above the recent high.

Management and risk description

Once shorts are set and first target is reached, we can look to move stop to entry and target the major support and target level.


Entry: Sell UK100.i at current levels and on a pull-back to 6275.

Stop: A break above 6310.

Target: 6150 and 6050.

Time horizon: Seven to 10 days.

FTSE trend
FTSE trend highlighting bearish outside day
Long-term FTSE trend
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— Edited by Robert Ryan

Non-independent investment research disclaimer applies. Read more
DudetteUK DudetteUK
Thnak you for this trade idea Steve!


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