Another week has flown past so here’s my FTSE 100 Analysis for the weekending 11th May. Another turbulent week what has seen the 20 day EMA just about to cross the 200 day EMA. While this really proves nothing it suggests that the downward move may continue. The new downward move has seen a new recent low setting the scene perfectly for a down trend. I would think the downward move will continue but I have no idea how far or deep it will go. I suspect it will heavily depend on the news events that emerge over the coming weeks. The main thing to watch out for is set to be the whole situation in Greece. If they fail to form a coalition or is the coalition abandons the austerity measures offered by the EU then they will be getting no more bailout money. Personally I don’t blame the EU for taking a hard stance in this as it’s the only way to send a message that the behaviour that caused the mess in Greece will not be tolerated. If Greece then leave the Euro the danger is it sparks a cascading affect and others may also default and exit t the single currency.
Anyway back to the FTSE 100 Analysis. With the EMAs in no clear trending pattern there is no confirmation of the down trend that the price movements have been suggesting. Therefore it’s still not time to only look for down trending stocks so I’ll look for trends in either direction. I probably will not be looking for any new trades this week as I go on holiday at the end of next week and I don’t want to have any trades open while I’m away. It also means that this will be my last weekly FTSE analysis for a while but I’ll get back into it when I return on the 3rd June.
Outlook for the week ahead is bearish.
