The FTSE 100 plummeted out of hours and activated our short entry point at 7262. This is a classic example of keeping a watchful eye on the trend. Shortly after midnight our alerts triggered and it was clear that the FTSE may move below our unconfirmed trend line and may fall below it’s bounce level. As a result we placed a short order at 7262 and posted it on Twitter. This order was filled a short time later.
Whilst the fall is one trading session earlier than expected the extent of the move shows this is the fall we have been forecasting At the time of writing the FTSE is over 220 points down so this will be the largest daily range (on a down day) since 27th January 2021.
So what does this mean for the FTSE 100 going forwards? It certainly looks there there is more downside to come. We were previously forecasting a downward trend until the middle of December and the impulsive nature of this move supports a move down to at least 6870. There will likely be a bounce in the meantime – possible up to 7160 (ish).
As far a stops go we are currently looking at around 7210.
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