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FTSE 100 Breaks 5918, But Quickly Descends In Overbought Market

By  |  Stock Markets  |  Dec 06, 2012 09:29AM GMT  |   Add a Comment
 
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FTSE 100
FTSE 100

FTSE had a stab at breaking Oct/Nov highs at 5903/07 and managed to reach 5918, but with the market overbought on daily charts this could not be sustained and we quickly came back below 5900. Shorts were not stopped out as we held below 5933.

Support today seen at 5879 then below yesterday’s low at 5966 we should see 5955. Below here we have better support at 5840/37 and a good chance of a low for the day. Longs here will need a stop below 5915 however as this would risk a move to 5793/90.

Shorts from the October/November highs at 5903/07 will need a wide stop above the September highs of 5933 as these are such important resistance levels. Buy back in to longs above here as this negates the downside pressures and should lead us higher for a test of 2012 highs at 6000.
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