Before we look at what will December bring for the FTSE 100 let’s take a look at what happened yesterday.
Yesterday the FTSE 100 bounced off and confirmed a trend line. This will likely be a very important support line in the future and is potentially the bottom line of a parallel channel.
Those of you who followed us on Twitter will have received live updates on the full life of our short trade which we entered November 26 2021 at 7262.
This was a great example of risk management based on understanding the trend. We exited 50% at 7025 on November 30 2021 and the remaining 50% was stopped at 7090 on November 30 2021 resulting in a profit 204.5 points.
So for December we are now looking at whether the FTSE will continue to rise to the upper line in the “potential channel” or fall to a potential long entry zone in the next week.
If the FTSE continues to rise we are still expecting a new low – but not until the middle of December.
Time to be patient again – watch the trend – learn.
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