FTSE – Volatile But Not Actually Moving

As this chart shows, despite having huge swings in either direction, the FTSE 100 index is actually stuck in a trading range and isn’t going anywhere.

For more than two months the FTSE has been stuck in a 580 point trading range, and as the stochastics (lower circle) are showing, price momentum is actually decreasing.

Barring the announcement of a dramatic news event I expect the current price action to continue until the red downtrend line is tested in early November.

 

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