FTSE and DAX Ratio Table 27th Oct 2017
It has certainly been an explosive start to this expiry for the FTSE (and the others) very much in contrast to the start of the last expiry.
Yesterday it opened strongly but then went back to 7440.11 so it certainly had another strong test of the bottom boundary, but as ever it is always difficult in this index as when the open = the close it can be difficult to discern.
The ratios are stronger across the board but much more so above the zone, and now with no Y ratio left there are but 3 levels of ratio with 7650 emerging as a line in the sand for this index this expiry.
Range: 7350 to 7450 or 7450 to 7550
Type: On balance bullish
Now that is how you do a breakout after a NZ bandwidth test.
Although, like London, having opened up just a couple of points first thing the DAX did was to have another test of the bottom boundary, getting as low as 12940, before taking off.
It did hit the upper boundary and pulled back but managed to get a second wind and just blasted through, as we would expect, and only paused for thought at Y2, getting as high as 13144.
It has been very quiet for a long time so this is understandable, however the real test will come at 13250 as R1 is the ratio level it struggled with last expiry, but if it gets aggressive there is only one more level above that.
Range: 13050 to 13150 or 13150 to 13250