FTSE and DAX Ratio Table 22nd June 2018
Poor old London and the FTSE as it seems others did indeed have this index’s fate in their hands, although they had their chances, but just failed to take them.
The same day as our last comment (19th June) saw this index hit R2 at 7550, the low being 7548.84, and bounce back up very nicely, to the tune of 55-points.
All the bulls had to do was now get above 7650 and back into the zone, but for whatever reason they lost that fight in the closing hour, closing at 7627.40, having been as high as 7705.20.
Yesterday morning they tried again, the high being 7670.78, but again failed, which meant it was all the way back down to R2.
This, places the FTSE in a very interesting position, as the high yesterday (7670.78) and the low (7548.12), apart from being our trading range, is also a ratio bandwidth test.
So, that generally means a breakout today, and to make matters easier, both 7550 and 7650 are on strike 2, and as we always say “strike 3 and through”.
Range: 7550 to 7650
Type: On balance only just bearish
As we said “and, in a nutshell, that is going to be the problem here (very underdeveloped) for this expiry as the ratios, on either side, currently only go as high as R2, which is going to be asking an awful lot of a little if the markets test them”.
The DAX has just stormed down through all that Y1 ratio, and even Y2 yesterday hardly caused a second glance.
And just to compound matters the zone has dropped, and by a considerable amount.
The real test will be when, or if, it hits the R ratios and if they provide any support.
Worth knowing that if they do then the nearest corresponding R ratio at the other end is not until 13400, a very cool 900-points away, but it may need a friend, so watch out for London hitting R3 perhaps, or something Stateside.
Range: 12350 to 12650
Type: On balance bullish