So much is still happening in the Market and yesterday we saw another day of volatility off the back of a spat between Trump and Iran. The problem for Trump arises from overusing threatening language will eventually result in getting used to it as Hot air and Rhetoric. Given this view, we may now be able to focus on the Fundamentals rather than geopolitics.
With a continuing weaker pound and earnings season potentially showing further profitable accounts, we may have a bullish few weeks. The Chinese also have managed to offset some of the cost of the trade wars by allowing a weaker Yuan which could also be positive for the World Economy and subsequently the FTSE.
To the Chart
What we are seeing is a Market that continues to hold up. However we have conflicting patterns as we have an inverted Head and Shoulders which is Bullish and also a near term Rising Wedge, which though could break either way, is more likely to result in bearish price action. My advise is to play the extremes of the pattern until it breaks. When it does eventually break we should have plenty of chance to ride a decent wave.
With a continuing weaker pound and earnings season potentially showing further profitable accounts, we may have a bullish few weeks. The Chinese also have managed to offset some of the cost of the trade wars by allowing a weaker Yuan which could also be positive for the World Economy and subsequently the FTSE.
To the Chart
What we are seeing is a Market that continues to hold up. However we have conflicting patterns as we have an inverted Head and Shoulders which is Bullish and also a near term Rising Wedge, which though could break either way, is more likely to result in bearish price action. My advise is to play the extremes of the pattern until it breaks. When it does eventually break we should have plenty of chance to ride a decent wave.