I’m Calling The Top In The FTSE 100 – Part II

I’m Calling The Top In The FTSE 100 – Part II
December 22 04:13 2018 Print This Article

Two months ago I wrote a post about something I have not seen in a very long time on Equity Markets, specifically on the FTSE 100.

The biggest advantages of trading the higher time frame charts are price action gets filtered, meaning the market noise and false signal are drastically reduced, allowing for the bigger picture to be clearer. As a result, trading signals become more accurate when trading on the higher time frames.

This is a level on level supply zone on the monthly chart. This is the strongest supply and demand concept. The chart suggests, price will go done to at least the monthly demand. The confirmation will be if price bounces off the monthly demand, then continues to head lower.

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The other day I came across an article to help validate what I was seeing on the FTSE 100 chart two months.  While the US Equity Markets are set to have their worst December since the Great Recession and on pare with the December during the Great Depression, other equity markets around the world are filling the same pain.

The FTSE 100 has fallen almost 4% so far this month, eliminating over 50 billion pounds of market cap.  The FTSE 100 is about to have their own record and because the FTSE 100 is on pace to have its worst December since 2002.

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NOTE: The FTSE 100 has only ended December lower four times in its history.

The article also points to the fact that the continued Brexit drama has caused companies to not want to invest more in England,

Germany’s economy (the largest economy in Europe) has come to a screeching halt, Italy’s debt issues and exports have been hampered by the US and China trade war.

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Price has now penetrated 50% of the monthly demand at 6650. The chart suggests price find buyers, but the sellers will eventually win the war, leading to the next leg down on the FTSE 100.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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rollandthomas
rollandthomas

I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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