Trending or Ranging?

Heres a monthly chart for the past few years to show what i was on about


Is this a head and shoulders forming on the ftse 100????
The formation is there but if the ftse goes higher than 6533 then it will negate the formation. The signal will come if ftse finishes below 6336. This could all fall into place with the go away april - may scenerio????
Obviously you should never second guess.

Im expecting a correction soon....If you look back over the past few years you can see the tops have been ether April or may.
go away during the summer months may be worth considering this year.come back in october

Waverider,

My view on the FTSE itself at the moment is it is close to reaching its first peak after the breakout from the rising wedge pattern it was previously in on the weekly. If it does indeed drop - this could provide the opportunity you speak of to buy in the dip.

Far away view of the bullish breakout



Why I think it could be looking toppy in the short term

Closer up view of why I feel it is close to an intermediate peak - just a quick one.




I expect if it does peak it would ultimately look to test the 200MA - on its way I believe it will find short term support at the 100ma and key fib area's from low-highs between 16th Nov 2012 and 15th March 2013 (assuming this is the top)

It seems that most of the stocks in FTSE 100 (apart from the miners) have broken out of the highs and seems to be trending up in a new bull run.

What do you guys think? it almost feel that I am missing out by being on the sidelines thinking about the potential correction - although the charts are saying go in with the up trend..

The miners on the other hand will recover so I dont want to miss on that high beta recovery (although it could be only in the second half of the year). The commodity stock piles are at its peak and copper seems to be on the down move.

But it looks like everything else (consumer staples, retailers etc) are all on the move...

Potential strategy is to confirm the trend then buy on the dips.

I thought I would post this just to check how everyone else is feeling and what strategy they are using to play this interesting markets at the moment.

Thanks in advance.