FTSE 100 - daily forecast for the FTSE 100

The FTSE 100 closed yesterday’s trading session as a narrow spread up candle but with small wicks to both top and bottom and ended marginally higher at 5757.86, a six month high for the index.  The candle characterised trading in the session which was nervous and jittery ahead of the G20 meetings which are now underway in South Korea and which extend throughout the weekend.  From a technical perspective trading this week has been marked by narrow ranges and a lack of momentum to break above the current price level, although yesterday’s price action still managed to hold above all four moving averages with both the 9 and 14 day averages much in evidence.  From a longer term perspective this period of sideways consolidation is becoming a concern and indeed with yesterday’s bearish signal on the Dow Jones Index of a small shooting star we can expect to see a minor pullback in the FTSE 100 either today or Monday.  The longer term outlook for the FTSE 100 index remains positive with all four moving averages pointing higher, and my FTSE 100 forecast for October is a move towards the 5833 high of mid April, provided we see a breach and hold above the 5775 area which is now becoming an increasing area of potential resistance. If this is breached then our October target is achieved and we can then look towards an end of year target of 6000 and beyond.

You can find a more detailed analysis of the Dow Jones by following the link.

FTSE rises to 6 month high on global earnings

FTSE 100 forecast - 21st October 2010

The Ftse 100 closed marginally higher yesterday, ending the London trading session as a narrow spread up candle which closed at 5728.93 and with a small shadow to the body of the candle.  The candle once again emphasised the bullish sentiment for the FTSE index (and equities in general) which remains firmly in place for the time being with the opening price finding support at the 9 day moving average and the intra day test bouncing off the 14 day average.  Both of these are clear signals that bullish intent remains firmly in place and for any longer term confirmation we now need to see a break and hold above last Thursday’s high at 5770.92.  A break and hold above this level would then open the way for a test of the high of April at 5832.34 and a breach here will then see the index move towards my longer term FTSE 100 forecast which is over 6000 by the end of the year.  The longer term moving averages remain fully supportive of this upwards momentum, with the 40 day pointing sharply higher and the 200 also beginning to incline upwards.

In the US last night the Dow Jones index bounced back sharply following Tuesday’s sell off on the interest rate announcement from China, ending as a wide spread up candle which broke back above all four moving averages once again to close at 11107.97.  The key level here is now the high of yesterday at 11152.88 and any move through here will see us approach the high of April 11258.01 with a possible breakout towards our end of year target of 11867.11.  You can find a more detailed analysis of the Dow Jones Index here.