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| FTSE100 |
Tuesday, 29 January 2013
FTSE100 - A look at the monthly chart
The monthly chart for the FTSE100 is looking quite bullish. We have a potential breakout in progress with only a resistance point at around 6400 ahead. Worth noting that the Bollinger Band is opening towards the upside and given that this is supported by the MACD indicator it suggests that there is plenty of room for more upside as the year goes on. The FTSE has already put on over 6% in January alone which is better than the whole of last year. While it's clear that this pace cannot be maintained, the upward trend is now looking fairly solid outside of pullbacks. While the fundamentals don't necessarily support it, it wouldn't surprise me if at some stage this year we hit 7000. The monthly chart almost looks too good
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Talking of bullish charts. Have you see the DJ Shanghai index recently ? Done wonders for UK investment trust e.g. JMC and particularly their subscription shares.
ReplyDeleteNot one I follow, but the general bullishness for equities right now suggests that this is where money seems to be looking for a home. US consumer rating number fell heavily today, market shrugs it off, just seems to want to go up. I get the impression the Dow wants to hit 14000 regardless and should do so fairly soon. After that round number we may get a pullback, but I wouldn't bet right now on it being a big one.
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