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FTSE Double Bottom

Background - Indices across the world have been selling off for 3 months now. The last few days have witnessed price action typical of a bottom formation.

Technical view - FTSE futures have made a double bottom on the daily chart and have followed it with a base breakout. Although there is resistance at 5500 that needs to be cleared on the daily chart, a look at the intra day chart is more revealing.

The intra day chart of FTSE futures shows heavy buying coming in the last hour of cash market trading in Europe. This kind of price action is typical of bottom formations and signifies institutional buying at these levels.

FTSE 30 min

This sets up a very low risk long entry in FTSE futures with an initial target of 5780.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in Z over the next 72 hours.