{"id":171260,"date":"2023-02-25T07:00:00","date_gmt":"2023-02-25T15:00:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=171260"},"modified":"2023-02-25T00:52:23","modified_gmt":"2023-02-25T08:52:23","slug":"ftse-100-big-pullback-test","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/ftse-100-big-pullback-test\/","title":{"rendered":"FTSE 100 Big Pullback Test of Breakout Point"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: FTSE 100 Futures<\/h2>\n\n\n\n<p>The\u00a0<strong>FTSE futures <\/strong>market reversed last week with a big pullback test of the breakout point. It is a bear surprise, but sitting in a tight bull channel will likely form a bull flag. The bears want a follow-through bar to create a top for the next few months. The bulls know there are many gaps below, and it will be difficult for the bears to create a strong bear case yet. We have had about five weeks of sideways price action here, so expect sideways to down next week.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FTSE 100 Futures<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Weekly<\/em> FTSE chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-Test-of-the-Breakout-Point.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-Test-of-the-Breakout-Point.jpg\" alt=\"FTSE 100 Big Pullback Test of the Breakout Point\" class=\"wp-image-171304\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-Test-of-the-Breakout-Point.jpg 1920w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-Test-of-the-Breakout-Point-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-Test-of-the-Breakout-Point-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-Test-of-the-Breakout-Point-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-Test-of-the-Breakout-Point-1536x864.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><figcaption class=\"wp-element-caption\">FTSE 100 Pullback Test of the Breakout Point<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <a href=\"https:\/\/www.investing.com\/indices\/uk-100-futures\" target=\"_blank\" rel=\"noreferrer noopener\">FTSE 100 futures<\/a> on the weekly was a big bear bar closing on its low.<\/li>\n\n\n\n<li>It&#8217;s a pullback test of the breakout point at the All-time high.<\/li>\n\n\n\n<li>The bulls see a tight bull channel. That means we are always in long, and most reversal shorts will fail and become bull flags.<\/li>\n\n\n\n<li>The bears see the move up but see three pushes and see a wedge top and possible reversal setup if we trade below last week.<\/li>\n\n\n\n<li>The bulls want a pause here and a bull flag. <\/li>\n\n\n\n<li>The trend is weakening, and the dojis in between bars mean that bulls are taking profits and buying below bars, not above.<\/li>\n\n\n\n<li>That means we are more likelier to form two legs sideways to down for a larger pullback, perhaps to the moving average.<\/li>\n\n\n\n<li>The bears want last week to be a failed breakout and get a follow-through bar this week &#8211; consecutive decent bear bars will suffice.<\/li>\n\n\n\n<li>The probability is long, but the bulls need a wide stop, which might create a sideways movement.<\/li>\n\n\n\n<li>Multiple open gaps are below, making it difficult for the bears to hold for a swing.<\/li>\n\n\n\n<li>The bears see this as a broad bull channel or wide trading range and are looking for second-entry shorts to sell &#8211; some may sell above this week, betting the breakout above will be small.<\/li>\n\n\n\n<li>Last week was a surprise, and that might convince traders to buy further below the bar and perhaps a scalp distance below.<\/li>\n\n\n\n<li>Expect sideways to down next week.<\/li>\n\n\n\n<li>The bulls ideally want to trade below last week and then close above it &#8211; an outside up bar. But this is probably only 40%.<\/li>\n\n\n\n<li>Most traders should be swing trading and expect reversals to fail and become some pullback test of a breakout point.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Daily<\/em> FTSE chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-in-a-Micro-Channel.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-in-a-Micro-Channel.jpg\" alt=\"FTSE 100 Pullback in a Micro Channel\" class=\"wp-image-171307\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-in-a-Micro-Channel.jpg 1920w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-in-a-Micro-Channel-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-in-a-Micro-Channel-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-in-a-Micro-Channel-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-in-a-Micro-Channel-1536x864.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><figcaption class=\"wp-element-caption\">FTSE 100 Pullback in a Micro Channel<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <a href=\"https:\/\/www.investing.com\/indices\/uk-100-futures\" target=\"_blank\" rel=\"noreferrer noopener\">FTSE 100 futures<\/a> on Friday was a bear outside down bar, closing on its low.<\/li>\n\n\n\n<li>It is the fourth consecutive bear in a tight channel, closing below the moving average.<\/li>\n\n\n\n<li>It was a Low 2 sell below Monday&#8217;s small bull doji. It was a bad sell signal, so it became a magnet above.<\/li>\n\n\n\n<li>For the bulls, a tight bull channel is becoming broader. That means the pullbacks have two legs and might even become always in short.<\/li>\n\n\n\n<li>They see a breakout above a swing high and now a pullback test of the breakout point. No matter how bearish it looks, most reversals fail in trends and become flags.<\/li>\n\n\n\n<li>Limit bulls will look to scale in lower, betting the Jan 25<sup>th<\/sup> swing low will hold and form a trading range and not collapse.<\/li>\n\n\n\n<li>The bears see a surprise and expect a follow-through second leg.<\/li>\n\n\n\n<li>Limit order bears will start to scale in above this leg and the big bar on the weekly chart. That might become the top for the next few months.<\/li>\n\n\n\n<li>Both traders saw the last close below the moving average on the daily chart at least two months ago.<\/li>\n\n\n\n<li>Bulls will look to buy a 50% pullback of the last leg above a bull bar and may wait to buy around the swing low.<\/li>\n\n\n\n<li>The bears need a lower high to do real damage here. It is a tight channel so most traders expect a second leg, and it might form a wedge bottom.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Market analysis reports archive<\/h3>\n\n\n\n<p>You can access all weekend reports on the <a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">Market Analysis<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Market Overview: FTSE 100 Futures The\u00a0FTSE futures market reversed last week with a big pullback test of the breakout point. It is a bear surprise, but sitting in a tight bull channel will likely form a bull flag. The bears want a follow-through bar to create a top for the next few months. The bulls [&hellip;]<\/p>\n","protected":false},"author":10339,"featured_media":171304,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[1697,136],"tags":[333,1699,1347],"class_list":{"0":"post-171260","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ftse-100","8":"category-analysis","9":"tag-breakout","10":"tag-ftse-100","11":"tag-pullback","12":"entry","13":"override","14":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/FTSE-100-Pullback-Test-of-the-Breakout-Point.jpg","author_info":{"display_name":"Timothy","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/timfairweathercagmail-com\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/171260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/10339"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=171260"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/171260\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/171304"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=171260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=171260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=171260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}