FTSE 100 Daily Analysis 14th Oct 2009

The FTSE 100(UKX) gapped up in the morning on the back of Intels earnings beating the streets expectations.

Rising metals prices put fire in the belly of the miners this morning, with Rio Tinto(RIO) additionally helped by reports of record iron ore production in the third quarter to satisfy rising demand from China.

Oil producers also made strong gains as crude ticked up towards $75 a barrel, with BP(BP) and Shell both gaining.

Retailers and Banks certainly recovered from the sell off yesterday, especially Barclays(BARC) and Marks and Spencer(MKS).

The number of Britons claiming jobless benefit rose by 20,800 in September, less than expected and the smallest rise since May 2008, official data showed on Wednesday, in a sign that the worst of the job shedding due to the recession could be over.

Technical Outlook

The FTSE 100(UKX) is holding above the previous double top high of 5228 , and in order for this rally to resume it must register a close above that level in order maintain a bull flag, a series of higher highs and higher lows.

Support Levels;
5213 , 5228 , 5177, 5160

Resistance levels;
5246