(Long) Weekend wrap up, May 25th

This is going to be a rather quick update. While the LSE was closed, some CFD still provided FTSE quotes that moved concurrently with the movements of the mainland European indices.

We have to give a substantial discount to today's movements across the European markets, given the UK and US holiday.


We have seemingly broken below the ascending channel we have been in since March, but this break out has occured during a Bank Holiday: we have to open and stay above the 4350s tomorrow to stay within the channel.

Short term momentum, has momentarily shifted to the upside: however, as I said on Friday, a possible test of the middle of the double top is still possible and would maintain the validity of such formation: I would look for weakness below the 4440s and beware of any remaining strong upside momentum if we broke above this level.


Momentum on longer intraday charts, such as 4 and 8 hours is still negative for now.

I am currently holding my bearish bias:

• Negative momentum on daily charts and long term intraday charts.
• Bearish formation developing: a double top in the 4510s.
• Oversold conditions on weekly and daily charts had been reached.

We need to take out the 4510s double top to re-assess the situation. With regards to downside targets, in early April the 4100s had provided major resistance: this could now turn to support on the way down and could be a first downside target.