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The FTSE to reach 6000!??

Published on August 12, 2010 in Education, Market Reviews and ShareHunter News. 0 Comments Tags: , , , , , , .

So, the CEO of Standard Life Investments announces that he thinks the FTSE is going to hit 6000 before the end of the year! He may be right – but he could be very wrong. He is obviously guessing as he cites no technical reasons why it should.

It couldn’t be that he has an ulteria motive could it? It couldn’t be that he wants to encourage as many people as possible to invest into equity based funds (with the Standard Life of course) could it?

We will keep a note of Mr.Skeoch’s claim and will congratulate him on Dec 31st if, indeed, the FTSE has hit the 6000 level again or, if it has failed so to do, we will ask him for an explanation of how he and his investment managers base their wild claims. And we will keep you informed.

At the moment we could not make any such claim ourselves. Our detailed technical analysis still shows the FTSE as struggling to gain enough support to get above the resistance of the 5400 level area; should it eventually succeed in doing so the 6000 does become a possibilty but, at this stage, it is only proper to advise caution as the FTSE could so easily confirm its current effort at downtrending and could, soon, quickly fall to the 4500 level and perhaps a lot lower!

So, Mr. Skeoch we think it would be a lot fairer of you to have given equal prominance to the possibilty of a FTSE collapse or a continuing sideways move – but, the, of course, that wouldn’t attract many new investors into Standard Life’s equity funds, would it!!

The FTSE 100 – Where Next?

Published on April 25, 2010 in Education, Market Reviews and ShareHunter News. 0 Comments Tags: , , , , , , .

The FTSE 100 is continuing to find it difficult to break above the resistance created for it at the 5770 level area. Despite a good performance on Friday it is still stuck in the doldrums underneath the 5770 level. For six consecutive weeks now this resistance has prevented the FTSE from moving further upwards.

In turn this can create a situation where the index can become exhausted by the effort involved in the many weeks of trying to breakout above the resistance and this can be the cause for it to give up and to fall quickly backwards instead. We have seen this sort of situation before where the expenditure of energy required in continually hitting its head on the resistance is such that the resulting exhaustion kills off any remaining buyer support and causes the index to fall away quickly.

However, there is one important factor present in the current situation which should not only prevent this happening but which should also provide the impetus for a coming breakout. And that is that all of the other major indices either have already broken out above their resistance levels or, as is the case with the FTSE 250 and Smallcap indices, are in process of successful breakouts. The important S&P 500, as well as the DJIA and the Nasdaq 100 have all moved impressively above their recent resistance levels.

So, whilst it is possible that the FTSE 100 is going to show the World markets the way for them to follow (downwards) it is highly improbable and it is much more likely that the FTSE 100 will, this week or next, be pulled up by dint of arbitrage and be able to put the 5770 level behind it and to commence its move up towards the next level at 6160.

Individual market commentary and illustrative charts are available at http://www.sharehunter.com/news/market-review/