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Where are we now

Reading price charts which may give you direction in the market using established TA methodology
Jonetc15
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Where are we now

#295170

Postby Jonetc15 » March 28th, 2020, 5:47 pm

This is an elementary effort to sort out my thinking as to where we are now. FTSE 100 with (simple) daily moving averages, RSI and MACD below he graph. I'll really appreciate comments. It's an amateur's take - do your own research!

Chart 1: One year, daily, 20, 50, 200 d.m.a.s. https://bigcharts.marketwatch.com/advch ... e&state=11 Some would note the 'dead cross' (only telling us after the event). But the index has just hit the declining 20 d.m.a. - Monday will tell us if this is resistance?

Chart 2: Five years, daily, 50 and 200 d.m.a.s https://bigcharts.marketwatch.com/advch ... e&state=11 The current level is rising to approximately the level of the March 2016 low.

Chart 3: Ten years, weekly, 50 and 200 d.m.a.s https://bigcharts.marketwatch.com/advch ... e&state=11 The weekly 50 d.m.a. is crossing down below the 200 d.m.a. Bearish?

No time to comment - really! OH reckons enough time spent online. Time for a glass of wine, and then supper beckons...

ATB - and stay safe
Jon

Jonetc15
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Re: Where are we now

#295531

Postby Jonetc15 » March 29th, 2020, 8:33 pm

A correction. The first chart should show three d.m.a.s - 20, 50, 200. I hope that this second attempt achieves that: https://bigcharts.marketwatch.com/advch ... e&state=11

I wonder what anyone thinks about the FTSE 100. I'm a fascinated bystander who hasn't got a clue what will happen next...

Jon

Jonetc15
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Re: Where are we now

#296184

Postby Jonetc15 » March 31st, 2020, 4:19 pm

Herewith an interesting article: 'Will FTSE 100 and S&P 500 stocks reverse following rebalancing boost?':
https://www.ig.com/uk/news-and-trade-id ... g-b-200331

Jon

Jonetc15
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Re: Where are we now

#308610

Postby Jonetc15 » May 14th, 2020, 12:30 pm

Two comments to start with. First, for anyone who is not familiar with online charts please bear in mind that they are constantly updated. This means (for example) if you look at the charts which I previously posted you will have to scroll down to look at the date at the bottom of each and match that with the date of my comment. Second, I am a total amateur just thinking aloud as it were, so you should not rely, let alone act on my comments and of course do your own research.
For the past fortnight I have found it difficult to reconcile the chart of the FTSE 100 and the economic outlook, even bearing in mind the major overseas (rather than domestic) earnings of the FTSE, although global markets are very difficult to assess. I always look at fundamentals as well as the charts, and the latter have to be treated with considerable caution as unforeseen (‘Black Swan’/’unknown unknowns’) events hit individual shares and indices/markets.

Here is today’s one-year chart of the FTSE 100 as at 12:20 pm with the 50 and 200 daily moving averages. It shows the recovery in March, followed by an upward channel/trend: https://bigcharts.marketwatch.com/advch ... e&state=11 The FTSE broke up through the 50 dma and is currently just above it. The RSI and MACD are in neutal ground, arguably showing a hint of downward divergence.

I have been wondering what would happen at the 6000/6500 range mark which many of you will remember was a significant resistance level in 1999-2000 and in 2006 to early 2008, with 6000 being resistance in 2011-2012. but then was a supporting base in 20015-2016.- see: https://bigcharts.marketwatch.com/advch ... e&state=11 (which I have kept as a daily chart for consistent comparison when arguably it should have been weekly or even monthly).

The five year daily chart shows how 6000/6500 may now be a resistance level - see: https://bigcharts.marketwatch.com/advch ... e&state=11

So, purely for my own purposes, I am treating the 6000/6500 as indicating that very solid buying will have to occur for there to be any significant move upwards. It may be that we are in a consolidating position, but it’s difficult to assess any downside potential. For my purposes, masterly activity (as they say) is the best course for the moment.

I hope that the links will work. Stay safe and DYOR
Jon

Jonetc15
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Re: Where are we now

#308615

Postby Jonetc15 » May 14th, 2020, 12:44 pm

P.S. Corrections.

The second chart is in fact weekly.

The third chart is wrong. It should be the five year - see: https://bigcharts.marketwatch.com/advch ... e&state=11

Sorry.
Jon


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