FTSE 100 Daily Analysis- 6th Nov 2009
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The FTSE(100) made a very impressive move above 5100 yesterday after it covered from the early morning sell, trading as low as 5036 at 9.00am.
The energy stocks were amongst the biggest risers as crude held above $80 per barrel and they were lifted by optimism on the economic outlook as central banks kept rates steady and U.S. data surprised on the upside.
The big news yesterday was the BOE keeping rates unchanged and increasing the QE by 25 billion pounds.
Investors will see the latest update from Royal Bank of Scotland and BA today as they publishes half-yearly results.
The Producer Prices Index is due for release at 9:30am.
In the corporate diary today, quarterly results are due from Smith & Nephew and interims from British Airways and Tate & Lyle.
Trading statements are expected from PureCircle, Royal Bank of Scotland, Rentokil Initial and United Business Media.
Technical Outlook
The FSTE 100(UKX) look set to maintain its march to the 5300 level as it puts in a higher and higher low. The resistance at the 5120 level has been breached and the next test will be the 5160 region. I have mentioned 5163 as the key level in my analysis recently, we need to trade and close above it in order for the FSTE to propel higher. The European markets are following the US markets(always the lagging unfortunately), as the US markets closed above the inside bar on the SP500 at 1061 and Nasdaq at 1705 respectively(please see my previous analysis under the article "Bulls Vs Bears).
Support Levels;
5144, 5138, 5125, 5110, 5104
Resistance Levels;
5166, 5163, 5190, 5200, 5210
