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FTSE 100 Becoming Volatile: Is This Expected To Continue?

Published 01/27/2022, 06:52 AM
Updated 07/09/2023, 06:31 AM
  • DAX 40 shot higher unexpectedly beating 15380/400 in what I still think is a bear trend to recover 50% of the January losses. Then prices collapsed again.

  • EuroStoxx 50 March unexpectedly rocketed to 4180/90 to recover exactly 50% of the January losses before prices collapsed again. I think prices are about to crash.

  • FTSE 100 March likely to remain in an increased volatility state as markets develop a bear trend. I certainly did not expect us to beat very strong resistance at 7420/30, but I think outlook is negative.

Today's Analysis

DAX collapsed again to very minor support at 15050/030 with a low exactly here overnight as I write—but longs are risky I think—further losses target 14950 before a retest of the best (probably the only) support for today at 14850/800. I would not bet on this holding. A break lower is an important sell signal targeting 14680/600, probably as far as 14350/300.

I still think gains are likely to be limited with minor resistance at 15270/280. A selling opportunity at 15380/400 (will hopefully work this time), stop above 15450.

EuroStoxx collapsed back below 4080 to target 4050/40 before a retest of probably the only support for today at 4000/3990. I would not bet on this holding. A break lower can target good support at 3900/3890 with a low for the day likely. Longs need stops below 3860. A break below here is an important medium-term sell signal.

Gains are likely to be limited with resistance at 4080/90 and strong resistance at 4140/50. Stop above 4165.

FTSE was becoming violently volatile! Exactly as markets do when they establish bear trends so expect this to continue. We have now wiped out the 2 days of very strong gains to test minor support at 7270/50. Further losses are likely targeting 7210/00 before a retest of this week's low at 7190/70.

Further losses are likely eventually towards best support for today at 7070/50. A break lower is likely to test the best support and buying opportunity for this week at 6950/6900. Longs need stops below 6850. Gains are likely to be limited with resistance at 7330/40 and strong resistance at 7420/40.

Video analysis -

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