The FTSE failed to hit our short entry points in April. On a positive note this means no loss making positions were established!
Going into May and June we are not as positive over the FTSE reaching a significant high in late June/ early July and which is reinforced by the lack of upwards movement on April 30th – despite the significant fall in GBPUSD.
As a result there is potential that a top is now in place – we don’t know this – it’s just a potential which we must be mindful of if going long on this index.
We are now watching the FTSE 100 closely over the next few weeks to see if/ and where it hits our next long entry zone as this will have a significant bearing for setting up short positions which should yield strong gains in July and August.
We have identified 4 potential resistance lines (5 if you count the long term trend) throughout June which will be useful in setting up short positions. At this stage we have no idea how things will play out but we are expecting GBPUSD strength into the same period which would certainly limit any upside.
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As always our posts are not investment advice. If you wish to trade or invest based on our analysis you should do so with great caution and consult your financial adviser. Remember never to invest or trade more than you can afford to lose.