The FTSE stayed above the 6100 level overnight and moved up bullishly pre-open. I suspect that we could see further upside today and I’m quite happy to buy the dips today. I managed to get in at 6141 after price had bounced off a previous support / resistance level, and came back down to re-test the 20MA.
As anticipated it turned out to be a fairly bullish day for the FTSE despite the dip towards the end of the day. I scaled out of my long position gradually, closing out half once I had 20 points in the bag, and the rest another 10 points to the good as the market pulled back following another MACD divergence.
The market seemed to hold around the 6062 level and I managed to get long again with further support from the 20 period moving average. The second trade was closed out for 15 points. After lunch it was a different story as the US markets dragged the FTSE down with the anticipated interest rate rise weighing in heavily.
Going into this mornings session the following points were evident:
The open was a little messy with several long candles as you can see on the 5 minute chart, and the FTSE oscillating between the levels of support and resistance between the 6026 and the 6045 levels respectively.
In addition to the triple bottom formation, I also noticed a class-B divergence between price and the MACD histogram bars so I’ve taken a long @ 6030 with a 20 pip stop which I’ve already trailed in.
A difficult days trading with the FTSE sitting in a fairly tight range for most of the day and finally breaking out in the late afternoon as the US markets opened. I was stopped out of my first trade for 10 points as I tightened up my stops once price had come back down and momentarily dropped below the 5964 level. Took one other short just before lunch off the 5982 intraday support and resistance level and managed to scalp a few points.
