FTSE Daily Chart 22nd December 2016
Notice the price action on the right of the above FTSE daily chart. Firstly we are currently forming a possible double top. The first top was the 11th of December and yesterday was possibly the second lower top.
Yesterdays candlestick was also a Pin Bar. It was a very weak Pin Bar but it is still a warning signal for many traders still long in their trades.
This morning the price has descended below the low of yesterday. This could have triggered sell signals for some longer term swing traders.
The warning signs of a market retreat back toward the swing lows on the chart (6647) are there. This is one big trading range that we are in on the daily timeframe. Having said that we are still officially in a bull trend and will be until the lower top is confirmed.
The bigger picture is important in trading, however the market moves in pulses. Bullish and bearish pulses. This means that for a day trader there are almost always trading opportunities in both directions despite the bigger picture.
We are now two trading days before the Christmas break. Trading has been thin on the last two days and probably will be today also. We’ll see what the day brings.
Yesterdays close is 7037 and so provides a nice target for price if we get a bounce on the open. Other than that yesterdays high was 7057 and that sort of level may also prove a resistance level for price today if it goes higher.
As always the round numbers will be important if price moves to within striking distance of them, 6950, 7000, 7050.
Market and trading analysis on the FTSE – 21st December 2016 – Post-market