Something a little different for everyone tonight - instead of doing a textual list of various obscure Technical Indicators, I thought I would pick out some Key Charts on the Various Indexes.
FTSE100 still looks uncertain and either the Bulls or the Bears could win out in the short term. However, if the Bulls win, they won’t be able to drag it far. We might see 7000 soon though……
US Markets look like they may go higher in coming days, but they are getting stretched to the Upside. Europe looks very Overbought and due a fall.
I have 35% ish Short FTSE100 Hedges against my Long Portfolio. Details on Trades page of this Website, happy to sit tight as markets feel very complacent and I am 65% Long.
**If you want more detail on understanding these terms, go to my Blog Page and click on ‘Buy Rationale’ or ‘Technical Analysis’ categories and you should get my ‘OPAY Buy Rationale’ series which covers these Technical Indicators in depth with lots of example Charts.**
The bottom Window shows the RSI (Relative Strength Index) - 70 is Overbought and as you can see we are near that level and also this is a level from which it has dropped for most of the last 2 years. We can go higher, but not a lot.
In the chart below I have circled a beautiful Doji - this is very Bearish in the context of the recent up moves.
The Chart below shows the Bollinger Bands (the blue wiggly lines) in the top window. My Black Arrow highlights how the Price has move away from the Upper Bollinger Band - this is bearish behaviour.
The bottom window shows the MACD (Moving Average Convergence Divergence) - note how the Green Histogram ‘hump’ is rolling over, just below the Blue Arrow.
Similar to the Nasdaq above, look at the Black Arrow in the top window of the chart below. This shows the that Price has moved away from the Bottom Bollinger Band in this case - this is a bullish development.
Note in the bottom window that on the MACD the Red Histogram is about to go Green and turn positive - this is bullish.
We got a lovely Up Candle today which should wipe out the weakness of the last 3 days last week. However look down the bottom and you will see not a lot of volume behind the move up - I have marked this with the Blue Arrow.