FTSE @ 5196 on Friday 18th December

The right-angled ascending broadening wedge is a bearish formation, warning of a correction to 4600. Upward breakout from the ascending wedge would signal an advance to 5800

FTSE finished at 5196 down 66pts on the week

Support Levels 5105, 5175, 5190, 5205, 5222, 5236, 5246, 5255
Resistance levels 5272, 5295, 5310, 5330, 5355, 5370, 5400

Last week, I was looking for a positive move up to 5330-5350 area with support in the 5200 area.

Short Term (15min Charts) 14-18 December
Low on Friday 18th December @ 5196.
High on Wednesday16th December @5335
Range 141pts

1. macd -4 and falling - SELL
2. Stoc (8) and falling - SELL
3. 5ema (5215) > 10ema (5222) with Bearish cross @ 5258 on 18th December

Break above 5224 required to go Long


Medium Term ( Last 3 months) 350pts
Low (5105) reached on Tuesday 3rd November
High (5397) reached on Monday 16th November
BB 5166-5387

1. macd +3.8 and falling . Sell signal on 26th November @ 5330
2. Stoc (21) and falling.
3. 5ema (5246) > 10ema (5260) . Sell signal on 17th december @ 5288

Last year the FTSE bottomed on Xmas Eve 24th December @ 4205 and then continued to rise 6 days to 4675, up 370pts (9%) on Tuesday 6th Jan 2009, before falling to 3461 in March and 4096 in July, peaking in November just short of 5400.

2003 saw a similar rise over 8 days from 4392 on Monday 22nd December to 4592 on Tuesday 6th January 2004, up 200pts (4.5%) with a retest in April 2004 @ 4600, before falling 300pts to 4300 by Aug 2004.

Plan
Open Long position early next week with Target 5400 by Jan 2010.

Position will be opened when Long conditions are met.