Nb. Our comment from the 01/20/20 (Not published)
Nb. Our comment on 01/24/20
“So, 7550 remains “a massive level””, was our mantra from the Jan expiry, and guess what, it’s the same for the Feb one.
It is a terrible shame we didn’t publish on the 20th, as all the action in the FTSE so far this week would have made perfect sense.
Monday saw the intraday high of 7682.77, but ultimately the market closed right on their zone’s upper boundary after this test, at 7651.44.
We do bang on about the auction, but the real time close on the 20th was 7649.90, so, for us, that is a close exactly on the boundary, but still inside by a whisker.
Tuesday saw an intraday high of 7651.44 and an intraday low of 7550.47, which was not only a bandwidth test, but a zone bandwidth test.
Normally, these signal a breakout the next day.
However, the FTSE was too timid, or uncertain, and traded inside its zone with no further boundary tests, with the intraday high of 7637.35 and low of 7563.52.
Regardless of this indecision, a breakout was still the signal, which obviously came yesterday, with a bit of a nudge from the Street.
You can see the ratio levels in the table above, so no need to repeat them here, but it is perhaps worth reminding, that below the zone means the market is in bearish territory.
Which, to put it another way, means the bears are in control.
Range: 7450 to 7550
Type: On balance just fractionally bullish