Mark Austin FTSE Trading Update - 19 Jan 2011

Good morning

 

I expect 6056 to be reached at some point today. This was the closing level for the FTSE last night and I shall use this for a target.

 

We have resistance at 6100 which the FTSE will struggle to get through

Mark Austin FTSE Trading Update - 18th Jan 2011

Good morning

Please find attached a video clip from the webinar held on Saturday running through my analysis on the FTSE. 

The FTSE continues to trade in a sideways manner with a break out due. In fact the price action can be seen as a flat triangle since the beginning of this trading year so the break out could come in today or tomorrow.  As mentioned in the video if we have one more push to the upside an important peak could come in at 6157.

Mark Austin FTSE Trading Update - 17th Jan 2011

Good morning

 

With the US markets shut today we could well have a range trading session this afternoon. For those who actively day trade this may present a good scalping opportunity (tight stops and numerous short term trades opened and closed).

 

We have a magnet target at 6028 however given the US holiday I may wait to see the opening break on the FTSE and a clear range established.

Mark Austin FTSE Trading Update - 12th Jan 2011

Good morning

 

The FTSE remains in a tight range and the action over the last few days is not the clearest.  Usually when price action is unclear it is corrective and for now we have to assume a short term top was formed at 6090. 

 

If we do breach 6090 then we will reach 6157-6200 quite quickly. This is my bullish alternate scenario.  Under this scenario this target would represent a longer term short opportunity. 

 

What ever the case there is not much room for the bulls left and a decline to at least 5820 is due.

Mark Austin FTSE Trading Update - 10th Jan 2011

Good morning

The FTSE continues to trade between 5945 - 6090 with a break out due shortly. If we see price action above 6000 again with an end of day close its still possible we could see the top of this rising channel hit 6200 but the sluggish action around 6000 and an incomplete wave structure for the advance to 6090 supports the view that a decline to 5820 has already begun. 

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Mark Austin FTSE Trading Update - 6th Jan 2011

Good morning

The FTSE trading closed over 6000 yesterday and closed at the high of the day. A positive move and doesn't give us a short signal just yet but I believe we are very close to a top.

If we look at the bullish scenario then the price channel is capped at 6200 (see attached) and we also have resistance at 6080. If we turn to Elliott Wave Theory then we already have five waves up pointing to a move down.  Elliott wave theory does state that wave 1 can be the same length of wave 5. Wave 1 started in July 2010 from 4788 and completed at 5429. That's 641 points.  Wave 5 started at 5518 on the 1st Dec 2010.  Add 641 onto this figure and you get 6159.  Add to the equation over bought conditions and we can see we are near a critical turning point and we could turn down immediately or at least very soon. I am not calling a complete top on this market but a move to at least 5800 is due. After that I will access whether we have one more move higher before a long term decline starts.

Mark Austin FTSE Service Update - 4th Jan 2011

Its clear from here that a major wave pattern is near completion and the FTSE is preparing for a major decline.  This also ties in with high bullish sentiment which often reaches an extreme near tops.  I'm sure you have all heard the saying..........when your local dentist starts recommending shares to buy its time to exit! I am looking at the FTSE topping over the next few months and I will be going into this in depth at the forthcoming webinar due to be held on the 15th January.  More on this shortly.

One final point  - This is the first trading day of a new year and month and these tend to be bullish with funds investing.