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Spread Betting Opportunities: November 16, 2007Friday November 16, 2007
This edition follows up the recent analysis for the FTSE 100 index.
Short Term Market Outlook: FTSE 100
The most recent chart of the Footsie is presented below.
On Wednesday, I anticipated a run up to the price band between 6455 and 6520. In the event, the Footsie only managed a high of 6465.4—about 10 points above the lower band of that range.
As you can see from the chart above, the index hit resistance and turned around just as it came into close proximity of the trailing price resistance area depicted by the line in the chart.
The possibility of that scenario had prompted me to warn that “despite the overtly bullish outlook for the Footsie, conservative traders should still be mindful of the downside and avoid excessive leverage. Appropriate stop losses should also be applied to any spread betting positions.”
From here, the FTSE100 is likely to once again return to probe the recent lows around 6268 and if that price level fails, then we should see further declines to around 6200 in the immediate instance.
To the upside, the first line of price resistance for spread bet traders to watch for is currently at 6465.
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