Hi, I've been trying to learn basic charting for a few weeks and have been following the FTSE with it. It appears to have (IMHO) significantly penetrated the 3800 support line. Does anyone think it will reach the 3600 support? If not, could I ask why? I'm trying to learn as much about this as possible. Thanks, Jon.
It seems almost a certainty to reach 3800 and break it and continue down. A descending triangle, very reliable in bear markets. The highs descend as sellers step in sooner and sooner until it hits support. The 3rd time is coming up and usually this is the breaker. Conservative approach: don't front run it unless you get a bounce before it goes to support, then sell after the bounce is exhausted. Short after the break also, but be alert for a reversal. If it breaches support many will short . If it keeps going down, it will feed on itself as longs might panic out, and until the shorts cover. If it reverses quickly after breaching, it will set off a short squeeze (bear trap).