The FTSE finished yesterday around the 10498 area and was remarkably resilient considering the broader risk-off move.
The main reason for that is oil. The FTSE's heavy exposure to the energy sector means rising crude prices can actually provide support to the index through the likes of BP and Shell. That is exactly what we saw yesterday, with energy strength helping offset weakness elsewhere in the market. However, the FTSE is not completely immune from a global equity sell-off.
European futures are pointing lower this morning and if the DAX and US futures continue to weaken, I think the FTSE will eventually struggle to hold up on energy strength alone.
What I'm Watching
The first area I am watching is the recent support around the 10460 area.
Below that, the 10400 zone becomes increasingly important.
If we see an early drop into support followed by buyers stepping back in, then the FTSE could once again prove to be the strongest of the major indices.
The first meaningful resistance is around the 10540 area, with 10585 above that.
A break and hold above those levels would put the bulls back in control.
Trading Plan
I am neutral to slightly bearish initially.
I don't want to buy the first dip blindly.
The ideal long setup would be an early sell-off into support followed by a strong bullish reaction and a reclaim of the short-term moving averages.
If 10460 breaks cleanly and the market starts forming lower highs, then I would be more interested in selling a failed bounce towards the 10400 area.
The main reason for that is oil. The FTSE's heavy exposure to the energy sector means rising crude prices can actually provide support to the index through the likes of BP and Shell. That is exactly what we saw yesterday, with energy strength helping offset weakness elsewhere in the market. However, the FTSE is not completely immune from a global equity sell-off.
European futures are pointing lower this morning and if the DAX and US futures continue to weaken, I think the FTSE will eventually struggle to hold up on energy strength alone.
What I'm Watching
The first area I am watching is the recent support around the 10460 area.
Below that, the 10400 zone becomes increasingly important.
If we see an early drop into support followed by buyers stepping back in, then the FTSE could once again prove to be the strongest of the major indices.
The first meaningful resistance is around the 10540 area, with 10585 above that.
A break and hold above those levels would put the bulls back in control.
Trading Plan
I am neutral to slightly bearish initially.
I don't want to buy the first dip blindly.
The ideal long setup would be an early sell-off into support followed by a strong bullish reaction and a reclaim of the short-term moving averages.
If 10460 breaks cleanly and the market starts forming lower highs, then I would be more interested in selling a failed bounce towards the 10400 area.
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Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.