And on behalf of all the staff, may I wish all our clients a Very Merry Christmas and a Prosperous 2010. Good health to everyone and thank you for helping us to reach a very important milestone in the company’s history.
Peter Waller – Director
The Technical View: With a very modest RSI just above neutral 50 at 55, and poised to break a line of resistance from the middle of last month at 5,330 the FTSE 100 seems to be right on track for a year end rally. This is of course helped along by Abu Dhabi handing out $10bn to Dubai, a small price to pay for indices like the FTSE 100 to hit new highs for the year, something which should be forthcoming relatively easily once an end of day close above the November resistance line projection is delivered.
The good news (such as it is) is that the UK index managed to close above the lows of the session on Tuesday, at 5250 or so, although the overall impression remains that prices have gone fairly quiet ahead of this week’s Fed meeting – not that any change in monetary policy is expected, although the accompanying statement will probably be more closely scrutinised than ever for evidence of even the subtlest change of emphasis. The key levels for FTSE traders remain at 5190 and 5395 or so.
Peter Waller – Investment Director
FTSE 100: 5258 Resistance Near 5300
We have enjoyed significant rises in the markets since the bottoms seen in March (The FTSE100 fell to 3460). The point has now been reached where investors are asking if current levels will break down.
Here are the views of one respected Technical Analyst I follow :-
For the FTSE 100 this morning is probably as much about consolidation again, after the flotation with intraday highs of the year yesterday. The hourly chart shows a rising trend channel in place since early last week with the floor of the channel running through 5220. The implication is that unless we see an end of day close below the November uptrend line there is little reason to imagine that will not be further upside for this market. Helping the bulls to remain confident is the way that we have finally got our golden cross between the black 200 period moving average and the blue 50 period moving average.
This is a buy signal in a classic technical sense, and it would be very disappointing/surprising if the signal failed.
It looks like more upside to come.
Peter Waller – Investment Director
Please click here to read our investment report for December 2008
The usual monthly analysis based on technicals only, makes an interesting read, especially given the unprecedented volatility seen last month. Please click here to read.
Please click here to read the latest article from strategist Max King in which he gives his forecasts for markets looking forward.
Here are two useful documents on the topic of stockmarket recoveries. Just click the following links to view them;
