1. Support - Lies between 4800 and 4700, previous tops and bots during the uptrend.
2. MACD - (Bottom indicator) Made a higher high before the recent downtrend began which suggests the downtrend will be short lived.
3. 40 week Moving Average - Cuts in at around 4700, though the FTSE like to breach it by 100 points before indicating a low which suggests 4600 going forward..
4. Uptrend Line - This is the main support line, is currently at 4760, indicating strong support in that area.

Buy Trigger - The Primary Buy trigger for the FTSE is the break of a downtrend line from the start of the correction which is presently at about 4915.
Stop Loss - The best place for the stop would be under the last significant low after the FTSE has breached the buy trigger. Current last low is 4780.
Target - A safe target would be be mid-way between the two trendlines projecting forward to the end of the year i.e. 4800 and 5500, implying a conservative mid-way target of 5150.

Nadeem Walayat

(c) MarketOracle.co.uk 2005

Disclaimer - This Trade Scenerio is provided for general information purposes only and you are reminded to seek independent professional advice before entering into any investments or trading positions.

The Market Oracle is a FREE Financial Markets Forecasting & Analysis online publication. We aim to cut through the noise cluttering traditional sources of market analysis and get to the key points of where the markets are at and where they are expected to move to next ! http://www.marketoracle.co.uk

This article maybe reproduced if reprinted in its entirety with links to http://www.marketoracle.co.uk

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.