The passing week was basically a sideways action, printing eventually an inside Weekly bullish bar, closing above the 8 EMA short term sentiment line, a clear sign of strength.
But, don’t let the inside bar, tiny range and the sideways action to mislead you. The week showed an important indication for the next move. The week has started with an attempt to make a follow through down to the Low of Monday, March 27th, but got a thrust up from the other side, a sign of strength and potential negating the current bearish setup. But that didn’t push the market up before a shakeout (last Thursday) and the renewal of the thrust up last Friday, causing by most chances the bearish setup to be negated, as well as respecting the Monthly Low at 7255.78.
So, currently there is much more “certainty” by a higher probability as for continuing the bullish momentum towards the next major target, at 7500, the Semiannual publish Pinbar on sloping 8 EMA of the first half 2016. Above that, the next target area is at 7560-7600. This is the target area for the Monthly Follow-through model mentioned in the past which is also the target of the Quarterly bullish Pinbar on sloping 8 EMA of the last Quarter of 2016. The level area is also the target of the false thrust down of last February that turned out eventually to be a Spring.
FTSE100, various timeframes (at the courtesy of prorealtime.com)
Disclaimer: Anyone who takes action by this article does it at his own risk and understanding, and the writer won’t have any liability for any damages caused by this action.
