Markets Chartist Technical Analysis

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FTSE
Tue, Nov 3 2009, 08:37 GMT
by Carol Harmer
Charmer Charts.com
FTSE Dec Contract
Ftse broke higher above 5054, but gains could not be maintained and the market closed mid range. Today there is scope for further weakness, but you should be aware of the daily stochastics.. They are at low levels, so you could see a bounce either today or tomorrow before the market sells off later.
5047 is your initial resistance. Failure to break above here keeps the immediate threat to the downside and sees this come lower for 5019 to 5011. You should be covering shorts to here. Re-sell if the market loses 5009 as further weakness would be evident with 4990 the next short term objective. Sellers will be looking to cover here, and buyers will also enter the market. Buyers would only wobble on a break of 4980 which would leave sellers free to roam lower with 4970/65 then targeted.
Now if the market trades higher and breaks 5054 look for another attack on resistance located at 5092/95. Here the buyers will lock in profits. Sellers will be evident to here and they will try and defeat the buyers to drive this lower once more.
Published on
Tue, Nov 3 2009, 08:40 GMT
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