To be fair we are probably being greedy expecting the perfect start in the FTSE with a test of R2.
It seems the US got there first and forced the pace here, but otherwise the direction and change in the NZ are all going as forecast.
However it is worth pointing out that getting above 7350 was a very hard fight here which took almost the entire day so it’s not all plain sailing.
But now it is back inside its NZ then there are clear skies all the way up to 7450, and of course the Y ratio that was below has now moved above the new zone, so there is still a lot of potential here.
Range: 7350 to 7450
Type: Not bearish
Just like London the DAX came close to testing its “very significant” level, coincidentally R2, but events in the States seems to have overtaken them.
Although both are now back inside their respective zones and both still have a considerable amount of Y ratio still above them without a bounce off these respective support levels there remains a degree of doubt over how much bullish momentum there is.
The next test will be how both now cope with their zones, especially the upper boundary which will provide their first taste of resistance.
Range: 12150 to 12250