Tuesday, 27 August 2013
FTSE100 - Are we in for a bigger correction still?
We saw divergence on the momentum indicator and a cross on the MACD leading to sell off, we have since seen a brief recovery back to the 6520 level, but appears to have been rejected so our focus is back on the low made on 22/08/13 at 6351. Charts confirm this price action as the indicators still look negative so we may look to test the bottom of the long term up channel around the 6150 / 6200 before seeing any significant buying interest.
A close above the the 6510 level on the daily chart, would change our view however, so if shorting the market, placing a stop above this level would be wise.
Charts sourced from ig.com
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