FTSE 100 Daily Analysis 2nd Dec 2009

The FTSE 100(UKX) broke through the 5300 barrier once again towards the afternoon close yesterday. The bullish momentum continues through to this morning as we are expected to open flat to slightly higher today, with an element of profit-taking expected after yesterdays strong gains, with commodity plays likely to be in focus as metals prices rise.

In Asia today, the Nikkei was up 8.49 points at 9,580.69, while the Hang Seng ended the morning ahead 283.12 points at 22,396.27.

Crude oil traded at $78.40 a barrel on Nymex.

Gold settled at $1,212 an ounce.

The latest UK PMI Construction reading is due for release at 9:30am.

In the corporate diary for the day, interim results are due from Monks Investment Trust and Opsec Security Group.

Final results are due from Brewin Dolphin, Dawson Holdings, Edinburgh Worldwide Investment Trust, Optos and Sage.

Braemore Resources and Greatland Gold host their AGMs.

Technical Outlook

I mentioned that we had broken out of the wedge formation yesterday, therefore the short term remains bullish provided we hold on to 5290 level.

Support Levels;
5290, 5265 , 5250, 5236 , 5195

Resistance Levels;
5322, 5340 ...
ultimate resistance level 5360 - 5370