FTSE 100 Daily Analysis 3rd Nov 2009

The FTSE 100(UKX)managed to remain above the psychologically important 5000 level. The banking sector will dominate today ahead of the announcement of restructuring plans for RBS and Lloyds.

The only economic event for UK economy is the PMI Construction Survey which will be published at 9:30am.

Technical outlook

The market is still looking bearish on all time frames at present, although yesterdays price action was very bullish and must not be ignored as it created bull flags intraday(higher lows, higher highs). The chart illustrates that the downward sloping trend line on the 10 min chart is still intact even though we attempted to breach it yesterday after the thrust upwards at 15.00 .

Support levels;
5041, 5027, 5000, 4950

Resistance Levels;
5062, 5078, 5104, 5140