FTSE100 Looking weak, time to trail the stop to lock in further profit

FTSE Trailed Stop

We have monitored this trade all the way since the middle of December, with it climbing aggressively to the upside and allowing us ample opportunity to trail the stop as illustrated in the image above.

The market is fast approaching a technical roadblock, the resistance on the large wedge which price has been trapped within for many months and so it would be savvy to lock in further profit by trailing the stop to the +2% mark. Price is also looking weak and technical divergence has formed indicating a potential move lower. This stop is technically strong also, sitting nicely below the minor consolidation we have had this past week. If price pushes higher, great, we will continue to ride the upside momentum. If it does the opposite however, and moves down, we collect further profit to add to the month’s return.

Tom

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