For the FTSE 7250 is now as critical as 7100 was/is.
Nb. Our comment from the 12/06/19
Well we sincerely hope you all had your fingers poised over the red button when the intraday high on the 27th November was 7446.00 (DR/R3 @ 7450), as you would have received a rather early Christmas present.
And actually, 7450 has returned to DR, not that it was ever far off.
Of more interest however, is the rise to R1 at 7250.
The reason being that there was a potential move in the zone to 7150-7250, which added greater weight to the Y2 Ratio level it was.
The fact the market blasted past it on Tuesday this week told us that the zone hadn’t moved, although, with two weeks still to run on this expiry, it is not an impossibility yet.
Especially towards the end, when things get a lot friskier.
Obviously 7100 is now a critical level, although we wager there were not many of you back on 18th, or even the 28th of last month, that even considered our zone, standing at 7000-7100, being a possibility, let alone a target.
Obviously, 7000, irrespective of it being a round number, is our first support level, assuming it does indeed get inside its zone.
The fact it is the bottom boundary of the zone as well as being R3, should provide more than enough futures buying, or dynamic delta, to provide a very strong level of support.
Range: 7100 to 7250
Activity: Very poor
Nb. Our comment on 12/06/19
The FTSE has definitely been stuck in our trading range since we last posted, namely 7100 to 7250.
Although the support does tend to kick in a bit more above 7100 than we would like, specifically around 7135, but it is after all a very serious level.
And probably why over the last 7 days 5 of them have tested this low.
If 7100 was to give way then 7000 would be the next stop.
On a more positive note, the zone is again very likely to move to 7150-7250, which also explains why the half way (7125) between the current support at 7100 may well be receiving a bit of unintentional assistance from 7150, the bottom of the new zone.
However, it is the other end of the trading range, 7250, that is of more interest at present.
Essentially, because the last 4 days have seen intraday highs of 7241.50, 7255.73, 7234.40 and 7250.67.
Again, but this time, R1 at 7250, may well be receiving a bit of unintentional assistance from 7250, the top of the new zone, when, or if, it does move.
It is a bit of a grey area, the point at which it becomes likely to move and when it actually does, made worse by this being the biggest of the big expiries, which means it doesn’t do anything quickly.
But, it better sort itself out soon, as next week it’s the rollover and expiry, and Decembers are very rarely dull affairs.