Footsie Analysis August 2015 (W,M)
Created on Saturday, 01 August 2015 00:19
Written by Austin Galt
We have already nailed the all time high so let’s now try and nail the major secondary high. Firstly, let’s review the bigger picture using the monthly chart before zooming back in with the weekly chart.
FOOTSIE MONTHLY CHART
The PSAR indicator now has a bearish bias after price busted the dots on the downside this month.
The Bollinger Bands show price bouncing off the lower band and back around the middle band. I doubt price will see the upper band again now.
Both the Stochastic and MACD indicators have a bearish bias.
As outlined in previous analysis, the expectation remains for price to move down to around the 61.8% Fibonacci retracement level of the move up from the 2009 low to all time high. This level stands at 4859.
This level is also right around support from the August 2011 low of 4791 and is denoted by the horizontal line.
FOOTSIE WEEKLY CHART
The PSAR indicator has a bullish bias after price busted the dots on the upside a couple of weeks ago. The price action since then has been fairly weak but I still expect a bit of follow through to the upside to put in the secondary high.
The Bollinger Bands show the July 2015 low at 6430 traded well below the lower band and price has just found support at this band again so we should get a move now back to the middle band at least.
I have added Fibonacci retracement levels of the move down from all time high. The two levels I am focusing on for the secondary high are the 61.8% level at 6858 and the 76.4% level at 6959.
The Stochastic indicator is bullish while the MACD is bearish so some wishy washy indications there which probably indicates a lack of conviction.
So, we now just await a secondary high before the downtrend resumes.