The FTSE is tough to trade at the moment.The 100 index has threatened a breakout to the downside which has (at yet) failed to materialise. I blogged about a key day on 24th June that I thought was due on the FTSE. Since then the index has remained range bound. The short squeeze is losing momentum by the day and today saw a 90 rise - so where's this bad boy going next?
The weekly chart is still bearish, although it now looks less bearish than last week. The daily chart is giving nothing away. At times like this, it is hard to figure out what to do. I feel like I want to make some trades, but nothing is screaming at me to buy or sell. My position now is certainly a conservative one. I'm not a short term trader or a gambler so until I get a feel for the market and which way its going to swing next, I'm standing aside.
I will be keeping an eye on what I see as two key levels for the FTSE. 4,346 now represents resistance and 4,225 is the new support level. Should price break one of these levels with sufficient support (represented by higher than average volume) then I will go with that move. However until the trend is established, I'll only be investing small size on these trades.
My scanning software is still working well, but to be honest I really need to make some tweaks in order for it to be as useful as I want. It's currently giving solid signals, but it takes too long for me to wade through these signals and still have time for the fundamental analysis that I would need to do in order to find high probability plays. I need to find some time to write some more AmiBroker code in order to get this working...Task for the weekend (if only I hadn't agreed to build a bloody gazebo in the back garden!)
