FTSE Bears Targeting Below 4700 Levels

21 September 2020

FTSE bears continue to remain in control and might have managed to carve a potential lower high around 6100 mark. The indice is trading 5957 for now and bears might be inclined to push below 5750 in the near term. A break there would confirm that a meaningful lower top is in place.

FTSE Probable wave counts are as follows: The drop from 6500 through 5931 was sub-divided into 5 waves, making an impulse Wave 1 on the chart here. Ideally an impulse should be followed by a corrective wave in the opposite direction.

FTSE bulls managed to carve a corrective wave through 6350 levels marked as a-b-c Wave 2 on the chart here. Also note that the indice had exceeded fibonacci 0.618 retracement of the earlier drop between 6500 and 5931 respectively.

If the above structure holds well, FTSE should ideally stay below 6350 levels as Wave 3 progresses. Also note that the indice is in the sell zone of the recent resistance trend line passing through 6500 and 6300 respectively.

Until prices stay within the sell zone of the immediate resistance line and also below 6300 mark, bears are expected to remain in control and push prices towards 5575 in the near term. A slip below 5750 should be encouraging to bears, going forward.

Traders might remain inclined to hold short positions taken earlier and also add more if prices reach 6100 resistance levels. The protective stop might be placed above 6500 levels and projected targets below 4700 in the next several weeks.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at
support@abansglobal.co.uk

Contact us on
+44 (0) 203 868 5803
+44 (0) 203 868 5825

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Equities

Global    Equities

Know More

View more
Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In