*Market update for the FTSE 100 index short bias analysis*
Following on from yesterdays live indices market analysis, I thought I would provide you with a quick update on the FTSE 100 index and what it did overnight and through this morning.
Let’s take a quick look at a chart showing my near term prediction for the index.
I was anticipating a break of this consolidation and a new bearish leg to start with selling pressure to take the FTSE 100 index down to new lows at 7000. This was backed up by the higher timeframe bearish bias and recent sell off on most global indices.
For the full technical analysis and blog post, please click on the link below.
Throughout yesterday afternoon and evening price continued to fall and the FTSE 100 remained comfortably below the bullish trendline it had broken and the 1hr 50ema.
As previously explained in the full market analysis blog post, I was awaiting a new lower high and retest of the redline before I would consider entering a short position. This then gives me the most reward:risk ratio and best chance of being onside with the current trend.
This opportunity came at around 7am this morning (13th August 2019) with a 2nd lower high forming below the trendline and 50ema.
With a stop loss comfortably above the trendline, 50ema and previous highs and a profit target of 7000.00 this trade gives a potential return of nearly 5R.
Whats to come?
I envisage the near term sell off to continue and for the FSTE 100 to slowly makes it way south down to the 7000 price level. There is a slim chance of this happening in one single big move so I will be monitoring the intraday swings with a possibility of scaling in on any small pullbacks.
You can track the FTSE 100 index my analysis live on the TradingView platform by clicking on the link below.