FTSE and DAX Ratio Table 5th July 2018
The FTSE is seemingly caught in no-mans land at the moment, which also happens to be our R1 ratio bandwidth below the zone.
Our last comment was how for the second time the bulls had failed to keep hold of the zone, courtesy of a collapse due to the auction, and therefore how critical 7650 was.
Therefore, no real surprise to see the next two days produce intraday highs of 7636.93 and 7632.12, but just to show the bulls aren’t dead the previous three days also saw intraday lows of 7540.71, 7544.98 and 7560.81 respectively.
The problem is that there is still 12 trading days to go in this expiry, so both levels remain critical, it just needs something to break the impasse.
Range: 7550 to 7650
For the DAX its zone continues to fall, which is never a good sign.
However, the fact it has fallen and the market has steadied, closing yesterday virtually unchanged from Friday’s close, means it is now back inside its zone.
There can be no disguising how precarious a situation it still remains in, but another small glimmer of hope is that R1 below the zone has remained at 11950, so all it has to do is break out above and back into bullish territory to establish another glimmer.
We of course don’t know for sure when the zone did actually change, but the intraday high yesterday of 12350 is too coincidental to ignore.
So, there is hope, but above all it really needs a friend still.
Range: 12250 to 12350