Market Overview: FTSE 100 Futures
The FTSE futures market moved lower last month, the third push down, so bulls see a wedge bull flag. We paused at the MA, and we have been going sideways for over a year now. Traders are buying below bars and selling above bars as the market lacks strong momentum. Most traders should wait for a reasonable stop-order entry on this timeframe.
FTSE 100 Futures
The Monthly FTSE chart
- The FTSE 100 futures last month was a bear bar closing on its midpoint at the MA, a possible wedge bull flag.
- It is a weak close, a bad sell signal for next month, but it’s also a bad buy signal – so we will likely go sideways again.
- In 2 years, how many bars have been below the MA? So if we break below next month, it will probably be bought back up.
- The bulls want a buy signal above this month – a High 2 at the MA. But the signal bar is a bear bar so it is weak.
- Most traders should buy above a bull bar.
- The bears see a LH, a possible head and shoulders top, and want a MTR. They want a test back to 7000.
- There has only been one consecutive bear bar in 2 years – so this month will likely be a bull bar.
- July was an outside bar, so probably sellers above.
- There are many tails below this month so probably buyers below.
- Bears want to get back to the October high – some bears might have been trapped there with a surprise reversal.
- We also gapped up above July so there might be bulls stuck up there as well we need to let out.
- Most traders should not enter at the MA.
- Ok to be short or flat. Bulls should have exited below last month.
- Advanced traders can use scaling in and they will probably got out at the midpoint where last month closed.
The Weekly FTSE chart
- The FTSE 100 futures moved higher as traders bought above the inside bar last week.
- It was a possible bull reversal last week, and we said that many bulls would be buying low and scaling in lower.
- Technically we are still more likely short with a lower high and a lower low. Bear stops have not been hit, but bulls might have been on the test of the lows.
- Bulls see a wedge bull flag on the HTF and a double-bottom reversal setup.
- It is a breakout and follow-through – but we are not always in long yet, most likely until we get above the MA.
- It is a good bull bar with a small tail, so some traders will buy and scale in lower.
- Bears see a sell climax and a test of the high of the prior week big bear bar.
- It is more likely in breakout mode.
- There is a lower-high double top and a double bottom – so traders are wondering whether we are going up or down.
- Bulls that bought the reversal and were disappointed in July, bought more on the sell climax and got out breakeven on Friday.
- Most traders expect to test the MA next week – the middle of that inside bar and then decide where to go.
- If we pull back next week a buy above the inside bar is reasonable – a bad sell.
- Most traders should not buy at the MA unless you can use a wide stop and scale in.
- The market is moving quickly through the 50% zone and back to the extremes so most traders will lose money in the middle.
- If you are trading the wedge bull flag, wait for a reasonable BO and a pullback to get in at a better price.
Market analysis reports archive
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