The 25x3 chart for the FTSE 100 is (currently) showing a clear bias to the downside. I'm slightly wary of high poles and its a measure of the way the market has behaved this year that the gains of Q1 and early Q2 have quickly evaporated. A double bottom sell signal was given initially when the market closed below 5,125 and filled the 5,100 box. The horizontal line shows the down column taking out the previous high pole of X's. The activated price objective is 3,875, no time scale for this. We would need to see some consolidation around current levels, a 3 box reversal giving a new column of X's and a move back above 5,225 for a double top buy signal to be given.
The long term bullish support line for the FTSE 100 remains in tact. This blue line is a shorter term support line and is in danger. Note the previous support at 5,050. If the FTSE is to push higher, this line must be held. Notwithstanding the recent rally (as evidenced by the last column of seven X's), a triple bottom sell signal was given when the FTSE closed below 5,000 and the 4,950 box was filled. Activating a price objective of 3,550, no time scale. This target will remain in play until the market gets back above 5,800.
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