Day trade
Trade view / 16 September 2016 at 7:48 GMT

Hints of further BoE cut results in Morning Star formation for FTSE

Director / PIA First
United Kingdom

Although the FTSE has been pressured this week, a hint from the Bank of England that another rate cut is likely prompted a reversal of fortunes yesterday.

A Morning Star formation indicates that further upside is expected over the coming days.
The Ichimoku cloud on the daily chart has proved supportive, with negative momentum also stalling.

The shorter time frames (4-hour chart) also have room to move higher before technical resistance attracts swing sellers.

Our long-term bias remains positive, with the reverse head-and-shoulder formation targeting a move to 7,355 points.

Management and risk description

Once the first target is met, move the stop to entry and target second resistance level on any balances.


Entry: Buy UK100 at current levels (6,710 points)

Stop: A break below 6,670 points

Targets: 6,760 and 6,790

Time horizon: 1-2 days

UK100 daily chart showing Morning Star formation
Source: Saxo Bank 

UK100 long-term weekly chart with reverse head-and-shoulder target 
f2 Source: Saxo Bank 

— Edited by John Acher

Non-independent investment research disclaimer applies. Read more
16 September
tcat tcat
nice call !
16 September
Crispee Crispee
steve, u still looking at monday-ish for your targets or longer?
16 September
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
First half of next week, but hopefully Monday.
16 September
Crispee Crispee
thx. have a god weekend
19 September
Michael Liu Michael Liu
Oh, what a pity, I just missed this big fish!
19 September
Crispee Crispee
good call steve. thx


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