Wednesday, 7 July 2010

FTSE 4900 still on BUY signal (JUST)

The move up from the low 4790 on Thursday 1st July hit resistance at 4968 at 15:15 yesterday (6th July). Asia triggered a BUY on 6th July and my LONG was triggerd at 4858. The pullback to 4893 has broken the 50ema (4897) which is a warning, but not a signal to close the Long from yesterday. The 71pt pullback works out as 40% retracement. The Stop has been raised to break even. If the FTSE breaks below 4880 (50% retarce), then I will consider closing the Long and go Short.

I use the 10ema, 20ema and 50ema on 30min crossovers on the charts to indicate a BUY or SELL signal. 30min charts allow me to hold a trade for anything up to 15 trading days. Position is only closed when the 10ema decisively breaks through the 50ema

Date Trade PriceStop Target Profit
06Jul BUY 4858 4858 5140 £0
22Jun SELL 5270 4858 4500 £4120
10Jun BUY 5063 5270 5400 £2070



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