FTSE 100 Weekend Analysis 23rd-27th November 2009
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The FTSE 100(UKX) ended down 16.29 points, or 0.3 percent, at 5,251.41 points, the lowest close since Nov 10. The weakness in commodity stocks and banks outweighed gains from defensive pharmaceuticals.
Energy stocks took the most points off the index as crude fell 1.1 percent, pressured by a stronger U.S. dollar.
"Sentiment appears to have started to shift slightly away from further gains, and towards a possible rebound in the U.S. dollar, as investors start to take money off the table and become slightly more risk averse," Michael Hewson, analyst at CMC Markets.
Defensive stocks were in demand as investors turned to assets perceived as safe bets.
Technical Outlook
The pattern on the weekly chart still looks bullish with no real signs of exhaustion after the double bottom at the 5000 level in the start of November. The market has raced past the 50% retracement at 5110 , the next level to watch for resistance will be 5500 at the 61.8% fibonacci retracement level.
Support Levels
5000, 5240-5250
Resistance levels
5500
