How Vulnerable is FTSE?
11 March 2011
WEEKLY CONTINUATION CHART
The big picture of the market suggests we are at a critical juncture.
Note first the series of Nested Head and Shoulders patterns. The slope of the Neckline is a weakness, but not fatal.
Next observe the successful drive above the Prior Pivotal High at 5796.
This is a level made more important by the coincidental existence of a cluster of Fibonaccis.
Look closer.
DAILY CHART
Having overcome the 5796 Pivot - which should now be good support, along with the more recent Prior Highs at 5846, 5810, the market looks to be struggling.
The Double failure at 6050 looks ominous since it led to the break back down through the diagonal bull trendline support (with some hesitation).
But we know that horizontals are more important that diagonals.
So CLOSE attention should be focused on the support from the Prior High - the band 5796.50-5846, as well at the 5777 Low which is a Completion level of a small Double Top.
If that were to complete, check the weekly continuation chart - the next supports of consequence are the 5650 or so and then the Neckline at 5510 BUT the minimum move implied by the (conjectural) Double Top would be as far down at the low at 5482....suggesting a clear break of the major long-term supports.
DAILY CHART
Note too, the small resistances above the market from the Prior Lows 5838 and 5847.
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