FTSE 100 stock (FTSE:UKX) is in a strong downtrend and the
propensity might continue. Based on the recent price action, upswings in the
market are followed by stronger downswings, meaning that the upswings might be
used as opportunities to sell short. There are times in which the market moves
in ranges when trading activity is high, which reveals that there are many
bears that are happy to frustrate determined bullish attempts.
In the chart, 4 EMAs are used for this analysis, and they
are EMAs 10, 20, 50, and 200. The color that stands for each EMA is shown at
the top left part of the chart. Right now, all the EMAs are sloping downwards (a
bear market), while the price is below the EMA 10. Any forays into the EMA 20
or 50 would bring good opportunities to sell short further, especially when a bearish
candle forms following that.
FTSE 100 is expected to continue its downward journey.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
What Super Traders Don’t Want You To Know: Super Traders
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