Short term
Trade view / 23 December 2015 at 10:34 GMT

UPDATE: All aboard the Santa Claus rally!

Senior Market Analyst (Equities & FX) / Faraday Research
United Kingdom
Instrument: UK100.I
Price target:
Market price:
Background

Last week I highlighted the statistical tendency for equity markets to have strong second half of December.

The FTSE has duly responded and the “Santa Claus rally” is well under way.

I’m a big fan of using emerging price action to manage my open trade risk and this trade is a prime example…

The FTSE has recently formed a new swing low and this provides us with an ideal opportunity to reduce our trade risk and trail stops below it at 5,996.

I will keep my original profit target in place at 6,293.

daily candle chart
 
Five-year chart
 Source: MarketScope 2.0

— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more

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