Home > Betting, Stock Market > This rally seems to have run out of steam.
This rally seems to have run out of steam.
Although the FTSE has crept above the resistance at 6,900, making new all-time intra-day and closing highs in the process, it is having difficulty making progress and has now dropped back to a couple of points above the twenty day moving average. A dip to just above the 20dma is the first step of my peak pattern and so I am hoping the pattern will continue and I have opened a spread-bet on a rebound back to recent highs. If the pattern does continue, the index should go sideways for a while, dipping a couple of times below the 20dma before we get a final peak. This could result in the FTSE poking its nose over 7,000, though it is always difficult to predict the size of the final peak in this pattern, and it also depends on the size of the second dip below the 20dma, which could be quite large. I remain optimistic that the next major move will be a decline to around 5,800 over the coming months as I predicted in my last post.
Events in Russia are looking worrying. Being very authoritarian himself, President Putin seems rather paranoid about Western influence on his border, assuming that the Ukranian people's desire to free themselves of Russian control means that the West is trying to take over there. This makes him unpredictable and I think he could cause some stock market wobbles in the near future.
