FTSE 100 forecast - daily chart 14th October 2010
The ftse 100 closed marginally lower yesterday, ending the London trading session with a narrow spread down candle which just failed to breach the 5,775 level, and closing at 5,727.21 following a muted session from US markets late in the afternoon. Despite this, the bullish trend for the ftse 100 index remains firmly in place, with both the 9 and 14 day moving averages providing excellent support to the move higher, and following Tuesday’s break above the recent sideways price action, this has provided a further platform of support as the bullish trend extends further. Below, the 40 day moving average has now crossed firmly above the 200 day moving average adding further weight to the positive tone for equities at present. The short term target remains the high of April at 5,833, and a break above this level will then open the way for the index to breach 6,000 and beyond before the end of the year.
In the US markets, the Dow closed marginally lower at 11,093.36 having probed lower early in the session reaching a low of 11,023.80, but recovered later to end with a small doji candle, with a deep wick to the lower body, giving us a further bullish signal as a result. The technical picture for the Dow Jones index is similar to the Ftse 100, remaining firmly bullish as we continue through the US earnings season, and with the 40 day moving average now crossing the 200 day moving average, this is adding further to the bullish tone both in the UK and US equity markets.
