A chance to shine in the Sept expiry for the FTSE.

Difficult start for the FTSE in the Sept expiry.


Nb. Our comment from the 08/17/20 (Not published)


Nb. Our comment on 08/24/20


Interestingly the intraday low on Friday was 5948.80, which was also a very long time after the August expiry, so should count as the first test of R3 at 5950.

The fact it hasn’t changed from that level all week, tends to underline this as well.

We may well get another stab at it, as it will all depend on how the market reacts at 6050, because it has been “born” into this expiry in the middle of the R2 ratio bandwidth.

This happens a lot more than one would think, and it is really no bad thing at all, as it means this expiry gets stuck in straight away.

And, for those of you who are not that accustomed to reading a ratio table, then it should be a very one-sided fight between R3 and R2, especially as the ratios are exponential.

But, also, and probably more of a reason, is that 6050 only just makes the threshold of R2, whereas 5950 is only just under the threshold of DR.

The only caveat, is that sometimes triples can bounce between the B ratios, but generally not at the very start, and, probably more to the point, that markets recently have been far more sensitive, and have been reacting to far lower ratios.

The SPX and Y2 being the case in point.

Apart from the obvious fact that there is a lot more ratio below the zone than above it, the fact that it has already tested R3, means that R1 above the zone should hold no fear.

It could be a rather bullish four weeks to look forward to therefore, but first things first, and that is namely 6050, and only after that, one can target reaching its zone.


Range:            5950  to  6050        

Activity:          Moderate

Type:              Neutral


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August 24th, 2020 by