FTSE 100 Daily Analysis- Update At 9.00am 16th Oct 2009

The FTSE 100(UKX) is looking bullish after gapping up whilst making higher high and higher low. The FTSE is currently contending with the 200 MA on a 10 minute chart and a gap fill level at 5078, which was mentioned as resistance in the premarket analysis.

The FTSE 100(UKX) is currently trading above the downward sloping trend line which is very positive, and we will need to watch the gap up level of 5069 as it will now act as potential support for the market, especially if we subscribe to the theory that a bull flag must put in a higher high and higher low.

I have also highlighted what I call the value area, an area where the market was range bound for a significant amount of time.