The FTSE 100’s 226 point rise last week was a show of strength and we continue to be impressed by the support provided by the 5010-5350 block area which has, over the last year, prevented the index from plummeting.
This area of 5010 to 5350 remains key to the FTSE’s future. If the index can stay, above 5350 then the rally will continue and the trend should change to an uptrend with 6000 then becoming a real possibility.
A large and decisive move is likely to get underweigh this Autumn and, on our current analysis of the technical signals and despite the positive signals of last week’s rise, that move is likely to be down; and sharply down at that. Probably to 4800 and then lower. At best we would put the current ‘odds’ at 60:40 on a down move.
Reasons why and the detailed forecast for the FTSE’s next move are given in our latest ‘FTSE Forecast’ which is available on request to Admin@ShareHunter.com
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