Another LL LH week has ended closed to its High (Weekly bullish pinbar on sloping 8 EMA).

As mentioned in the last review, taking out the Weekly Low did close the open gap the market left at the beginning of the year, which now turned into a sign of weakness. More important is the fact that the Monthly bar of January closed as a bearish pinbar on the Monthly upper Bollinger band (which didn’t happen after successive penetration of the band by the previous bars), and that it has already been followed by a thrust down on the current Monthly bar.

A thrust up above the Weekly High can be a signal to go long (at least for the same amplitude of the Weekly bar, the 7310 area), but not before at least one Daily bar of pullback. If this thrust above the weekly High is taken place at the beginning of the coming week, it is better to wait then for a pullback of at least one day, and buy the follow-through upwards (if/when). In either case, the Weekly Low should be respected, otherwise it is a clear sign of weakness.

The next important bullish targets are the Quarterly and Semiannual bullish pinbars, pointing at the 7500-7600 area, at the Semiannual upper Bollinger band.

FTSE100, Daily and Monthly charts (at the courtesy of prorealtime.com)

Disclaimer: Anyone who takes action by this article does it at his own risk and understanding, and the writer won’t have any liability for any damages caused by this action.