Just how much ratio will the FTSE take on.

Now we are starting to look like a triple witcher in the FTSE.

Nb. Our comment from the 08/20/21 (Not published)

Nb. Our comment on 08/31/21


Apologies for not posting last week, but as you can see by comparing the two tables above, not a great deal has changed.

Although, we do hold our hand up here and admit that it would very probably have been rather useful to know that the Y2 ratio bandwidth above the zone went from 7050 up to 7150.

Basically, the last three day’s intraday highs of 7151.75, 7150.12 and 7157.60 respectively just about tells you all you need to know.

Although the close on Friday was just below R2, please don’t forget that that was strike 3 (so it is already on borrowed time) and that this is a triple, where it generally takes on the high R ratios, or at least it’s those that are needed to turn the tide.

Which brings us around to one of the changes, being the appearance of R3 at 7200.

So, will the FTSE stay in its Y ratio bandwidth? If not, will R3 then hold?

Of course, we don’t know but, at least now you know where the dynamic delta is so you can tighten stops or at least have your finger poised over the button.

What we will say though, is that DR at 7250 is far closer to B1 than it is to R3, and the differential is something akin to R2 in its own right, so therefore a very significant hurdle, which is probably of more use to the portfolio investor.

Also, there are now just three weeks to go in this expiry and any further forward progress is always going to be tainted by the fact that the zone is static down there at 7000, so it will always look temporary to us for now.


Range:            7050  to  7150        or        7150  to  7200       

Activity:          Moderate

Type:              On balance bullish


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August 31st, 2021 by