Spread Betting Opportunities: February 18, 2008
Monday 18 February, 2008
This edition of Spread Betting Opportunities maps the path for FTSE 100 index in the sessions ahead.
The most recent chart of the FTSE 100 is presented below:
Short Term Market Outlook: Footsie 100 index
The recent three-session bear-market bounce in the US only resulted in one single, albeit, very strong day for the FTSE100 on Wednesday. The crucial piece of evidence to note on the Footsie chart is the break of the short term price support at 5830 (outlined in the last Market Timing Update) on Friday afternoon. That is crucial in that it suggests further moves to the downside in the week ahead and we would now expect a move to 5680 and then 5600 if not much lower to retest the 5338 low set in January.
Only a move above 5785 would demonstrate a renewed attempt to retest the overheard resistance at 6050–6075. But evidence supports the bears.
One general note here: so long as the Footsie remains below that trailing red resistance line (6132 on the chart), the index is in clear bearish territory in the medium term and the spreadbetting bias should remain to the downside. In such environments, rather than look very short horizon trades, more conservative should look to enter short positions at identified price resistance levels. Of course, those with higher risk tolerance can get in and out on the long side too when bear-market rallies are anticipated.
Key short term support levels to watch for: 5830; 5700–5689;
Key short term resistance levels to watch for: 5915; 6050–6075.
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