FTSE 100 - Short term sell

20 ม.ค. 2017

Since the vote on Brexit, the path taken by the index is fairly obivous. The impulsion started at the end of June then is followed a period of consolidation from beginning of August until the end of 2016.
The new year started with a serie of new highs when the index reached 7341
The daily graph shows some sign of a reversal with a recent cross of the MACD, a momentum about to go into negative territry and a clear downtrend on the RSI. These indications open the way for a short term downtrend.
This feeling is confirmed by the weekly chart, showing a nearly perfect Marubozu, sign of a reversal in investors' mind and displaying an obvious sellers' dominance.
- Short term, close long or open short to get the opportunity of the index going down until its trend (or 50) near the 7,000 mark
- Mid to Long term, the uptrend still prevails.
- A break below the 7,000 points would confirm the short term short position and initiate a short position.
- On the contrary, a rebound would be a good entry point for a long position