The chart for the UK's FTSE 100 reveals a rather useful feature of the Ichimoku charting technique which conforms well with some other more traditional technical analysis indicators. The UK benchmark index settled Thursday's session at exactly 4280. Without wanting to appear too clairvoyant this was precisely the level which I suggested would need to be tested in my Daily Form commentary published Tuesday morning.
The revealing aspect of the chart above shows that the top of the green cloud, which according to standard Ichimoku interpretation should provide an initial support, is also at 4280. Not entirely un-coincidental is the fact that the 50 day EMA for the FTSE is also at 4280!
Across many asset classes, the last few days have seen a probing of major support levels, and longer term direction will remain ambiguous until the outcome of this testing is fully resolved.
As of Friday morning in European trading the FTSE has bounced rather nicely off the 4280 level with an almost two percent gain, which, also shows the benefit of using the Ichimoku levels for identifying key levels at which profit targets and stop-loss levels can usefully be set.