Published On: Tue, Feb 21st, 2017

FTSE stalls in quiet trading temporary correction expected

InstaForex

Day trade

/

Sell

Trade view / 40 minutes ago

Director / PIA First

United Kingdom

Instrument:UK100.I

Price target:7250

Market price:7289

Background


The medium term reverse head and shoulders formation has been reached and prices reacted lower from the target of 7350.

Yesterday’s price action failed to push past the previous high (7324) and the reaction lower has been confirmed with a bearish engulfing on the 4 hour chart.

A general lack of interest is expected to lead to a deeper correction today with 7250 being a reasonable target.

Parameters

Entry: Sell UK100 at 7295

Stop: A break above 7325

Target: 7250 & 7225

Time horizon: Intraday

Charts:

 Bearish engulfing on 4 hour chart

Source: Saxo Bank

 Momentum stalling on Daily chart

Source: Saxo Bank

Reverse head & shoulder formation completed (long-term chart)

Source: Saxo Bank

— Edited by Clemens Bomsdorf

Non-independent investment research disclaimer applies. Read more
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