The FTSE 100 Index remains very much range bound. As the chart below shows, is been ranging from 4,518 to 4,295 since early May.
The big question is which way is she gonna go? The market is clearly in a trading range with neither the bulls or the bears looking strong.
In situations like this, I would suggest placing two orders. One above the level of resistance and one below the level of support.
Here’s a trading plan.
Place two trades.
1 Sell Stop @ 4,250 &
1 But Stop @ 4,550
Link the trades using an OCO (One trade Cancels the Other)
If the short trade fires
Stop = 4,550
Target = 4,048
If the long trade fires
Stop = 4,250
Target = 4,653
(Note: Long trade does not give a great Risk/Reward ratio.
