Mark Austin FTSE Trading Service Update - 17 May 2011

Good morning

Last week's trading range broke to the downside yesterday at 5880 but we failed to see the crucial close below 5880 (sell signal). We use the close (4.30pm) to filter out false breaks and I would imagine quite a few traders went short yesterday at 5880 only to get stopped out on the late afternoon rally. This is known as a ''short squeeze''.

In the absence of a close below 5880 and a failure to make fresh lows we remain patient until this market finally provides a clear signal.   One thing I will add is its Tuesday today and this day has a tendency to be bullish when the overall trend is up.  So today's action may give us a  clue as to whether this recent range bound activity is mearly a flat correction or indeed we are going to see a sharp sell off.

To learn more about the key levels and access Mark's daily analysis you can signup through this link.

Spread Betting Offer - the BEST broker offer I have ever come across

The broker I recommend is Gekko Global Markets and they are offering a Cash Bonus on first deposit up to £500 if you deposit £2000 (Terms & Conditions apply). The special offer is available through this link only.

Mark

Mark Austin FTSE Trading Update - 16 May 2011

Good morning

After a week of consolidation for the FTSE, the weekly chart has left an ''inside bar''. This means the FTSE traded within the previous weeks range.  When you see an inside bar during a period when volatility is picking up you can expect the following week to break a trading range and also a large move to come in. This would also tie in with expiry this Friday.

Mark Austin FTSE Trading Update - 13 May 2011

Good morning

The week of consolidation continues and we remain in a horizontal channel with no real clear direction. We did manage to close the day just above the 50 day moving average (at 5940) so that is one saving grace to the bulls.  

If the market breaks 5930 today then we could well see the all important 5855 level broken.

Mark Austin FTSE Trading Update - 12 May 2011

Good morning

We talked on Monday about the negative outside week which was created last Friday and also the powerful rally that came in on the same day after holding a major bullish trend line at 5855. These are conflicting signals and will result in a pause in the market as traders become more cautious after a long spell of buying.  My forecast on Monday was a week of consolidation between...

 

For the full analysis and Mark's trading opportunities you can signup through this link here.

Mark Austin FTSE Trading Update - 11 May 2011

Good morning

The FTSE is currently trading at 6035 out of hours and this is near the top of the consolidation range.  If we see acceptance above 6050 (3 thirty minute candle bars) the FTSE will be on course to making new highs above 6106 and towards 6300.

However if the FTSE fails to capture prices above 6050 and instead makes an established break below 6000 again the index will most likely target an unfilled price gap at 5912 (see chart).  So in summary the 6000-6050 range is very important today.

The daily high yesterday was 6024 however the FTSE had a dividend of 12p so we can reduce the gap target to 6012.

Mark Austin FTSE Trading Update - 10 May 2011

Good morning

As mentioned yesterday the FTSE has started the week in consolidation mode which is not that surprising given that we are in May, historically a ''sluggish'' month for the stock market.  

Given the failed retest at 6000 yesterday I am at this stage inclined to move any stops for longer term ''long'' positions to an end of day close below 5900.  We are still in an over all up trend so buying this market is still preferable however I remain slightly cautious until I see acceptance over 6050 again.

Its also worth noting the FTSE will report one of the biggest dividends of the year today, standing at 12 points, so if we are to see this index act like its still in a bull market it will be today.