The hesitation per the previous Weekly bar (whether it was a stopping action) has faded away. The false thrust down of last Wednesday gave a very good bullish setup once the High of Tuesday has been taken out, at least to the near targets.
The market has almost reached the major targets above at 7580-7600, the former is for the Follow-through model on the Monthly chart, and the latter is for the Spring of last February bar.
The current Monthly bar that is going to close on the coming Wednesday looks very strong, leaning on a sloping 8 EMA. It would be a clear sign of weakness not to see the market making a new High by the end of the current month, reaching at least the above first mentioned target.
Pay attention to the Monthly upper Bollinger band (currently slightly above 7600) and combine it with achieving the major targets. Closing the Month without reaching the upper band, especially with a daily decline made after some climax can point out that the market has time as for the midterm bullish move, and unless the market gives a new bullish trigger with a new Monthly High right at the beginning of June, there are good chances of having a sideways action for the next month.
FTSE100: Daily, Weekly and Monthly charts (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.
