Forex Trading For Beginners 10 October 2012
Forex Trading for beginners brings you this analysis. From October 1 to October 10, the FTSE 100 rallied from 5738.60 to 5885.60. This set up a retracement zone at 5812.10 to 5794.75. On Tuesday the index tested this zone, declining to 5795.18 before closing at 5810.25. This action was expected since the main trend is up and buyers typically look at these retracement areas as value zones.
The recent trading action has also formed a triangle chart pattern on the 1440-minute chart. This chart clearly shows the formation of a lower top and the possibility of a trendline breakout to the downside. The triangle chart pattern is a non-trending pattern that usually indicates impending volatility. A volatile breakout could occur when the trendline near 5761.62 is penetrated.
Further technical analysis also indicates the formation of an ABCD Fibonacci chart pattern. This pattern suggests the FTSE is set up for a break to 5673.89 over the near-term. This pattern is likely to be successful as long as the top at 5885.60 is not violated. With both conventional chart pattern analysis and Fibonacci analysis indicating weakness, investors should look for continued downside pressure on Wednesday.
|Forex trading for Beginners 10 October 2012 page created by Leslie Buhlig|