We've seen a trend break on our FTSE 100 contract, seeing the price retrace and bounce from the 50-day moving average with minor resistance located overhead at 10,500, providing two nearby levels that can be used to build trade setups around.
The message from the oscillators is largely neutral at this stage when it comes to directional bias, with RSI (14) around 50 while MACD looks set to cross the signal line while remaining in positive territory. Upside strength is waning but the bears don't have the ascendency yet, meaning both long and short setups can be considered depending on how the near-term price action evolves.
Long could be set here with a stop beneath Tuesday's low for protection, targeting a retest of resistance at 10,700. 10,500 is the level to watch immediately overhead. Should the price fail to clear it, consider nixing or even reversing the setup, setting shorts beneath it with a stop above for protection.
If the price were to break and close beneath the 50-day moving average, another option would be to sell targeting either the 100-day moving average or support at 10,100.
Good luck!
DS
The message from the oscillators is largely neutral at this stage when it comes to directional bias, with RSI (14) around 50 while MACD looks set to cross the signal line while remaining in positive territory. Upside strength is waning but the bears don't have the ascendency yet, meaning both long and short setups can be considered depending on how the near-term price action evolves.
Long could be set here with a stop beneath Tuesday's low for protection, targeting a retest of resistance at 10,700. 10,500 is the level to watch immediately overhead. Should the price fail to clear it, consider nixing or even reversing the setup, setting shorts beneath it with a stop above for protection.
If the price were to break and close beneath the 50-day moving average, another option would be to sell targeting either the 100-day moving average or support at 10,100.
Good luck!
DS
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.