FTSE Bears Stare Down To The October Low

Bears appear unconcerned with the prospects of a Santa’s rally this year, who instead appear set to drive it to the October lows.

Since the all-time high in May, the FTSE has shed over -11% by yesterdays close (or by -13.6% at the October low). Whilst we’ve seen a recovery from 6851.59, the trend structure remains bearish with a series of lower swing highs and lows. Furthermore, the leg from 7552.02 down to 6851.59 saw a pickup of bearish momentum to suggest the down trend is accelerating. There’s also a suggestion that the end of a correction may have been seen.

Since the October low, the FTSE has rebounded in an almost haphazard style. Crucially, this retracement has stopped just shy of a 50% retracement and 50-day MA, a bearish pinbar and bearish outside day which suggests strong resistance sits around 7200.

Our bias remains bearish below the resistance cluster around 7200. Yet given it closed at the low of a wide-ranging sell-off yesterday, a break beneath 7027.45 may not be far off to bring the October lows into focus.

 

Faraday Research offers real time FX and Equity trade signals from qualified analysts. Click here to try us free.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @FaradayResearch

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Deb Shaw

• 

  eToro

• 

  Currencies Direct

• 

  Tom Clark