In this article, we want to help you to determine the possible trading strategy for the FTSE stock market Index ahead of the BOE tomorrow. We will use our top-down trading analysis to find the suitable entry point and the target.
You can see on a weekly chart that the instrument is in a long-term rising wedge (usually bearish) with a strong rejection 7674 level. This level is now a strong downside support and needs to be broken for an upside test of 7670 level again.
The daily chart is revealing the significance of this downside support level. The instrument is forming a triangle below it and is giving to us a possible SL level for the short trade entry, it this is to be a downside reversal triangle.
For a trade entry, we will use the H4 chart. As an addition to a triangle formation as seen on a daily chart here, we have a bearish flag formation with a key downside breakpoint at the 7474 level. You could go with a short trade entry here at the market with the SL above the 7700 level, ideally at the all-time highs 0.7735 level top target 7270 level at least.
Happy trading! (click on the chart to enlarge it)
New Prop-trading opportunity!
Andrews Pitchfork trading technical analysis education+Premium membership!
Forex managed accounts!
FOREX MANAGED ACCOUNTS
Through time we have developed a very respectable trading strategy which defines Entry, Stop Loss and Take Profit levels with high accuracy and allows you to make position Risk Free. We are publishing 5-10 trade alerts per week via real-time Private twitter feed!