Any one looking to short FTSE ?

[icmarketsfx]

FTSE is going to reach at the top resistance area 6885.00 , Is there anyone looking to enter for sell around that area ?

Do you think that FTSE will reach at 6900.00 ?

 

[icmarketsfx]

Technical Analysis

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[Sigma-D]

At first glance it looks like an ascending triangle which favours a breakout to the upside. I then noticed you haven't drawn the slope to connect the majority of low points, more of a casual lowest low on chart to most recent low, which doesn't really have any technical basis.

What is bullish about this is that the lows are higher. What do I know? I don't trade the ftse and my chart reading and technical analysis is dreadful. But if I were going to waste yet more money trading stuff I don't understand, I'd be lining up with a buy limit just above 6900.

 

[icmarketsfx]

I don't enter a trade blindly with a pending order, PA will give signals for the end of bullish journey. Wait for sellers to come and control the market.

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[Sigma-D]

...or buyers....

 

[Sigma-D]

The reason you might wish to use a limit order in these instances is that when an area of resistance pops, it usually does so with a great deal of momentum and you'd want to capitalise on that.

 

[honeill]

FTSE is going to reach at the top resistance area 6885.00 , Is there anyone looking to enter for sell around that area ?

Do you think that FTSE will reach at 6900.00 ?

I know that we are in May and we should "sell in May and go away" but i need a clear signal of price reversal to go short on FTSE.

 

[icmarketsfx]

I am also not in favor of applying a pending order unless you are using some hedging strategy.
Just wait for bulls to get tired and bears show some momentum.

 

[Npard23]

UK fundamentals aren't good. They are being carried by rich EM oligarghs buying London apartments. However, I would short the CAC 40 instead because the french economy is much worse shape than the UK.

 

[psaTrading]

Good point, I'll be watching.

 

[honeill]

I agree with the analysis, good point.

 

[icmarketsfx]

Do you guys still assume FTSE will reach to 6885.00 Level ?

 

[Trader333]

Wait for sellers to come and control the market.

It is not "Sellers" that cause markets to fall.

 

[tar]

It is not "Sellers" that cause markets to fall.

Even in equity markets which don't have the "shorting facility" , markets do plunge and sell-off ...

 

[barjon]

Even in equity markets which don't have the "shorting facility" , markets do plunge and sell-off ...

Yes, but T333 is right that sellers do not "control" the market in such circumstances. It is buyers who are in control and who force sellers to offer lower and lower before they will buy. ie: a buyers market.

 

[tar]

Yes, but T333 is right that sellers do not "control" the market in such circumstances. It is buyers who are in control and who force sellers to offer lower and lower before they will buy. ie: a buyers market.

I didn't disagree with him , just wanted to add a thought about the "sellers" remark ...

 

[icmarketsfx]

It is not "Sellers" that cause markets to fall.

I was talking in terms of trend reversal confirmation.

 

[Trader333]

Markets drop when there is a lack of buying support. You can have a situation where people are selling and selling but if you also have enough buyers to support it then the market will not go down. By the same analogy you can have very little selling but if no one is buying then as Barjon says the market will keep dropping until buyers come back in to support it.

It is also a myth that "Short sellers" are to blame for markets declining and in many ways Short sellers provide liquidity to markets and have the opposite effect. I cannot remember which country it was but they banned Short selling and the effect was to see the fastest drop in market prices ever seen and why ? because there was no support for buying as confidence was lost caused by preventing a free market.

 

[icmarketsfx]

Good piece of information. Please also share your opinion how do you see the market? Don't you think some authorities controls and manipulate the stock markets ?

 

[Trader333]

Don't you think some authorities controls and manipulate the stock markets ?

Well I don't actually know but in theory this is possible but only on a very short term basis. Long term it is not possible and when it has been attempted those trying to do it get hit very badly.