Wednesday, January 5, 2011

Short Term Outlook of FTSE

Since 2009 September, the United Kingdom stock Index FTSE has been trading in a expanding triangle pattern. Expanding Triangle is a reliable. But trading and projecting will be very tough for any Analyst or Trader. The price pattern suggests, the present rally from the low of 4800 from June 2010 seems to be the last leg of the Expanding Triangle.

The last upside rally in an Expanding Triangle would be followed by a last downside leg. If FTSE behaves as we project then it is likely to see a correction towards 4400 levels in coming weeks.  For the short term, the level 6000 seems to be a crucial level for the coming trading session. If it could sustain above that level, a short term rally towards 6300 is likely. If not a correction towards 5450 is likely

In the Long term, since it failed to clear the 2007 high, this Index seems to be in a bear market.