Short term
Trade view / 27 June 2016 at 7:20 GMT

Rallies in FTSE/Dax spread look like downside opportunities

partner and technical analyst / 3 c analysis
United Kingdom
Instrument: UK100.I
Price target:
Market price:

The second-quarter call to sell the FTSE at 6,325.0 points has been confirmed as initial gains in April and also in June have attracted sellers. Last week’s signals continued to point to selling rallies, and despite initial gains of 273 pts, the rally has been sold for sentiment to deteriorate by over 500 pts from Thursday’s 6,334.0 top. 

The FTSE/Dax spread is breaking a weekly bear trend, which is negative, but with daily sentiment oversold, bounces similar to last week's should be expected. These should remain temporary though as signals continue to point to selling into any strength.

Management and risk description

Sell the rally and then lower the stop to entry if the first target is met


Entry: sell at 6,082.0 points, a 62% recovery to the losses posted since Friday's high

Stop: 6,227.0, just above Friday's high

Targets: 5,866.0 and 5,675.0, last week's low

Time horizon: this week

Weekly FTSE/Dax spread

Source: CQG Inc 

Sep '16 FTSE
FTSE Daily - recovery to losses
Source: CQG Inc 

Wide "outside week" for the FTSE on weekly chart
FTSE Weekly - "outsideweek"
Source: CQG Inc 

FTSE at four-year lows on quarterly chart
Quarterly FTSE - 4 year lows
Source: CQG Inc 

— Edited by John Acher

Non-independent investment research disclaimer applies. Read more
trading4fun trading4fun
nice one steve, already significant pullback from early rally
Steve Lucas Steve Lucas
Yes, not for the feint with tech levels wide capital at risk is small good luck sir L


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