WE R BLEEDING TODAY AND PROBABLY 2MORROW,HOW LONG WILL THIS BLEEDING LAST..IF WE LOOK AT OUR TOP40 Top40 end of the day chart made reverse head and shoulders and broke neckline on 18th May. Neckline of head and shoulders was in the same time 23.6% Fibonacci level for the drop from all time high on 22.May 2008 to low on 20.November. 2009 Reverse head and shoulders are usually nice pattern to trade but don't forget possible back test of the neck line around 19700. Neckline was tested 5 or 6 times over last few months so now should be solid support now How the market might playing out it will hit resistance just above at 20850-21000 then retrace back to retest neckline around 19700 and up towards 23000. Break above 20850-21000 would signal medium term buy signal..
think most will turn around tomorrow (I believe our market likes bloody fridays) a bit of a sideways move. Maybe a late spurt in the afternoon (to give the fundimentalists something to talk about) Then its FRIDAY we go and get pissed.
maybe a 50% retrace to minor support at 21800 so we could shed another 300points(bullish view) or another 600 to 21500(bearish)if market is in freefall we could get to the 19900(very, very bearish), but there are many support levels on the way down, we gotta break the first at 21800!
Nice double top forming on the FTSE100 hourly chart dating back to about 7 May. If the 4300 level breaks then the downside target would be 4100 so still some good downside possible. That said, its also possible that its gonna break upward (ascending triangle) with a nice target of 4700.