The FTSE 100 did successfully break out from a Descending Wedge & A Narrow Descending Channel Pattern formation. Please, read my previous publications. However, it failed to take out it's previous high of 7145.5. Worse still, it even failed to surpass it's own recent high of 7001.9.
Where does this leave us? The reality is that unfortunately, the bears are still in control. So the downtrend continues for now. This will be the case until the 7001.9 is exceeded by price action. We are in an expanded Descending Channel Pattern formation as you can see from the chart. This in itself is a bullish sign only when we break upwards out of it. As long as we are inside it, it is bearish.
Conclusion: If you are currently long, sell half of your FTSE 100 position and keep as cash in case your decision to stay long is wrong. Honestly, I feel that if the FTSE 100 closes below 6799, it would probably go further down in which case, you should sell 100% and decide whether you wanna go short or not. However, if you are short already, just remain in FTSE 100 with 100% investment. But if the FTSE 100 turns against you and breaks above 7001.9, then you have to close your short position and go long.
Please, take this advice at your own risk. Thanks
Where does this leave us? The reality is that unfortunately, the bears are still in control. So the downtrend continues for now. This will be the case until the 7001.9 is exceeded by price action. We are in an expanded Descending Channel Pattern formation as you can see from the chart. This in itself is a bullish sign only when we break upwards out of it. As long as we are inside it, it is bearish.
Conclusion: If you are currently long, sell half of your FTSE 100 position and keep as cash in case your decision to stay long is wrong. Honestly, I feel that if the FTSE 100 closes below 6799, it would probably go further down in which case, you should sell 100% and decide whether you wanna go short or not. However, if you are short already, just remain in FTSE 100 with 100% investment. But if the FTSE 100 turns against you and breaks above 7001.9, then you have to close your short position and go long.
Please, take this advice at your own risk. Thanks