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Another FTSE peak signal forming?
If we get another small dip below the 20 day moving average this week, (and I am expecting that we will) that will form another of my peak signals in the FTSE index. So it looks like we won't be breaking 7,000 just yet, though we could get close if the final peak is a five-percenter. The last one (in May) was less than 0.1% and the one before that about 4.1% so we could be due a large one, though it is impossible to predict the size of the final peak from looking at the chart. The FTSE has been trading in the range 6,000 to 6,850 for nearly two years now and it is about time it broke out one way or the other. I suspect that what might happen is a failed attempt at 7,000 prompting a 15%+ dip to around 5,800 so that the index can take a good run-up at finally breaking through 7,000.
In spite of my abject failure on the last one, I intend to spread bet on this pattern. I am hoping that we will get a large decline which should make things easier to predict than last time around and I will keep you posted how I do!
