FTSE 100, Lloyds Bank, Tesla, and the ‘most important chart in finance’ | Summary and Q&A

TL;DR

FTSE is in a bear trend, with potential downside target at 5500. Tesla is down 32% from its all-time high, indicating a decline in bullish sentiment. Carbon credit market shows a collapse in the cost of carbon credits, questioning the viability of the net zero concept.

Key Insights

• 🧔 FTSE is in a bear trend, with critical support at 7000 and a potential downside target at 5500.
• ✋ Tesla's decline of 32% from its all-time high suggests a decrease in bullish sentiment and challenges the net zero concept.
• 💦 The carbon emissions market has experienced a significant drop in the cost of carbon credits, indicating a collapse in confidence and potentially questioning the viability of the net zero concept.
• 🤯 The banking sector, represented by Lloyd's, is expected to head lower and may test previous lows.
• 🙈 Bounces in the banking sector should be seen as selling opportunities.
• 🪐 The market is indicating a decline in confidence in the carbon credit market and the net zero concept.
• 😀 The financial sector, including banks, may face a collapsing confidence in the carbon credit market.

Transcript

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Questions & Answers

Q: What is the current trend in the FTSE?

The FTSE is in a bear trend, with a corrective ABC pattern and major support at around 7000. If the support is convincingly broken, the potential downside target is at 5500.

Q: How has Tesla been performing recently?

Tesla has declined by 32% from its all-time high, indicating a decrease in bullish sentiment. The stock broke below its uptrend line and is currently trending down.

Q: What is the significance of the carbon emissions market?

The carbon emissions market, which includes carbon credits, has experienced a 50% drop in its cost. This collapse in the market raises questions about the viability of the net zero concept and suggests a decline in confidence in carbon credits.

Q: What is the outlook for the banking sector, represented by Lloyd's?

Lloyd's has broken below a channel and is heading lower. It could potentially test the previous low at 23 pence. Bounces in the banking sector should be seen as selling opportunities.

Summary & Key Takeaways

• FTSE is in a bear trend, with an ABC correction pattern and major support at around 7000. Potential downside target is at 5500.

• Tesla's weekly chart shows a break below the uptrend line, indicating a decline in bullish sentiment. The stock is down 32% from its all-time high.

• The carbon emissions market has experienced a significant drop of 50% in the cost of carbon credits, highlighting a collapse in the market and questioning the viability of the net zero concept.