27 Mar FTSE, SPX & DOW Brief Mid Week Analysis; 28th March 2013
Whilst waiting for previously discussed swing trade entries (aside from NZD:CHF where I entered the proposed swing long), here’s a snap shot of whats going on with Indices.
FTSE 4 Hourly.
No obvious direction but I’d probably want to wait for the outcome of this descending triangle before taking any position. A descending triangle is usually bearish and a breakdown would offer a technical measured move target of 6135
DOW 4 hourly
Price has formed a mini channel. Probability solely based on previous occurrences that I’ve logged suggests, throw-overs aside, the channel would be more likely to fail to the downside.
I’m currently short DOW, but I don’t think this chart has any real evidence at this stage that a short is the right way to go. In view of this my stops are at break-even as I’m just chancing it that we could fall from here based on some unconfirmed signals on the 5 min chart.
To revisit the longer term charts of SPX and FTSE, the ideal reversal levels defined by these strangely interesting trend lines on the Monthly charts are yet to be achieved. Although you can’t confidently base targets from such long term and possibly obscure patterns, you can certainly try a low risk counter-trend trade if the levels get achieved and if you are lucky you might just manage to top-tick the entry for a stonking low risk trade.