Markets Chartist Technical Analysis

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FTSE
Mon, Nov 2 2009, 08:54 GMT
by Carol Harmer
Charmer Charts.com
FTSE Dec Contract
Ftse held 5142 and smashed lower. The break of 5045 took this to the longer term 61.8 fib level of 4964, halting at 4971. Today, as you would expect, the short term charts are oversold. Again they have not turned to show a move higher. So initially they may be a bounce, but it would only start to really come higher once these short term stochastics have turned.
Now there is good short term resistance located at 5011/13 and this may be enough to hold the topside until the stochastics turn. Buyers would therefore look to cover all longs to here. Brave sellers may appear, but they will not hold if the market breaks 5020. A break above here would start a move to the topside with initially the break point of 5045 the immediate target. Longs to be covered to here. Only re-instate further longs if the market breaks above 5054.
Longer term weekly charts are showing a move lower over the coming weeks. Considering there has been so little retracement from the lows of March to current times this move should be expected. It is not going to detract from the overall bullishness of the weekly charts, but a move to 4817 to 4745 should not be ruled out..
Published on
Mon, Nov 2 2009, 08:56 GMT
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