Hello, and welcome to Cantos Charts Masterclass. I'm Sandy Jadeja, Chief Technical Analyst for City Index. And welcome to another lesson in technical analysis. As always, these are simply for information and educational purposes only.

One of the key questions I get asked on a weekly basis is what's happening to the FTSE 100? This market just doesn't seem to want to come down. So we'll take a look at that within the context of where the market is right now. We have talked about the FTSE in the past. We have talked about key resistance levels. So let's see what's actually happened so far.

Now here, this is the daily chart. And in the previous lesson, I mentioned that 6050 to 6117 is notably a key resistance area. And, so far, the FTSE as we speak has made a high at 6095. It seems to be struggling to break above that 6100 area. That's not to say that once it gets to 6117 it's the end for the FTSE and it could really drop back. This is just an area that we're looking out for, for possible reversals for short-term to intermediate-term opportunities. There are some upside key levels for the FTSE in that 6250 and 6345. There's a possibility that the market could rally into those areas before we start seeing a correction.

Now of course, from a bullish point of view, we have higher highs, higher lows. And notably, we broke above the 5902 area with the high/low at 5519. Now there's the RSI indicator at the bottom. This market is moving higher but the indicator isn't following. What does that equal? Divergence. So it's suggesting that there is a possible weakness in the move towards the upside.

Now here, this is the monthly chart. Once we have the bullish candlestick at 4790, that's a bullish engulfing pattern. Since then, the FTSE 100 has simply been going higher. Now along the way, we have a doji and a spinning top pattern. We also had a red candlestick where there was a possibility that the market could have been heading lower. But the low wasn't taken out. And that's why you should still be in this move. So on a market basis, it's bullish.

The long-term move for the FTSE right now is still bullish. The indicator on the monthly chart is not looking terribly weak at the moment. So these markets on the monthly charts are going to move much slower than the weekly and the daily. But nevertheless, on the monthly chart itself, the longer-term trend is still bullish. So if we are going to get reversals, then we would come back down to a lower timeframe.

And on the weekly chart here, we have the parabolic indicator. What is the first thing we notice? That the market is trading quite away from the parabolic indicator. That would suggest that at least in the short-term timeframe, we're probably not close to reversal, based on the indicator. However, if we start seeing reversal patterns on the candlesticks, then we need to pay attention.

Now just a few weeks back, we did have some bearish candlesticks patterns. Only on one occasion was the low taken out, once we saw the shooting star pattern. But since then, that would have stopped out, so that would have given us a loss on that trade. However, myself included, amongst other traders, we are looking for this correction. But let the market talk. Rather than trying to predict, let's follow the market. So on both the monthly and the weekly, this is still looking bullish. And we do need to watch out for those resistance levels.

Always remember to use the larger degree timeframe. And remember that we want to look at the longer degree trend and then break that down into intermediate and short term. Markets do what we least expect them to do. In other words, we're expecting these markets to come off right now. But let's wait for the signal. Use the candlesticks patterns to assist with the reversals and don't overcomplicate things.

Remember, here at CantosCharts Masterclass, we want to keep things simple, safe and successful for you, as a trader. In the meantime, have a great trading week. This is Sandy Jadeja.