The London Financial Times Index ($FTSE) had sideways consolidated for 17 years after topping back in 2000. That consolidation period has ended in a big way in 2017 and this index appears poised for a very significant rise. Despite how you might feel about Brexit, the market has casted its vote rather bullishly and I'm looking for the breakout to result in a lengthy uptrend - perhaps for several years. Here's the chart:
So long as monthly closes continue to hold the rising 20 month EMA, currently at 6785, I'd view the long side as the only side to be on with respect to the FTSE.
Happy trading!
Tom
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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