FTSE 100 Daily Analysis 4th Nov 2009
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The FTSE 100(UKX) was taken over by the bulls yesterday as a breach below the psychologically important 5000 level brought them back with force, not to mention upbeat data from across the Atlantic helped the index pare its losses, with new orders received by U.S. factories beating Wall Street expectations.
It will be interesting to see the reaction in the banking sector today as it was one of the biggest drags yesterday after shake-ups at Royal Bank of Scotland(RBS.L) and Lloyds(LLOY.L) and poor results from Swiss peer UBS (UBSN.VX:).
In economic announcements, the UK PMI Services Index is published at 9:30am and the BRC Shop Price Index at 10:30am.
In a busy corporate diary for the day, quarterly results are due from Endeavour International Corp and JD Wetherspoon.
Interim results are released by Alterian, FirstGroup, Logica, Marks & Spencer Group, Taylor Wimpey and Umeco.
Technical Outlook
The chart still illustrates a bearish stance on the market as we have printed another lower low and lower high from the previous days action. The downward sloping trend line is still intact whilst an upward sloping trend line is emerging and needs to be watched with interest.
Support levels;
5062, 5041, 5031, 5027, 4990
Resistance Levels:
5078, 5104 , 5138, 5144 5190
