UK Stock Market Update on Critical Voting Day

UK Stock Market Update on Critical Voting Day.   Today is a very big day in UK.    Let’s examine the Ichimoku charts to see how people are reacting.

Below is the monthly time frame for the FTSE 100 provided by eSignal.     Price is in the cloud which is indicating we are in a long term consolidation pattern.   The range of this consolidation is 5840 and 6317.

2016-05-12_uk_monthly

Below is the weekly time frame.   Price is below the cloud so the sentiment is bearish.    Price had change to go bullish but couldn’t do it.   It stopped at the bottom of the cloud and started to move down.   This is showing weakness on the bullish side.     The bottom of the cloud is matching the monthly resistance.    This is causing a multiple time frame resistance which is very strong.

On the support side, the weekly and monthly are not agreeing.    This means the supports are not strong.   The next major support for the weekly time frame is 5979.

2016-05-12_uk_weekly

 

In summary, price is consolidating with a higher probability towards the bearish side.    Price bounced off the major resistance and now is trying to reach the supports.

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About the Author Manesh Patel