FTSE 100: To Reach 6400 As Long As 6195 Holds As Support
- U.S. Non-farm payrolls printing 210k vs. the 200k expected (Bloomberg News Survey) lifts the FTSE and should keep it buoyant over the coming days ahead
- The short-term trend is bullish and I expect the FTSE 100 to reach 6400 as long as 6195 holds as support
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Trading on Friday was a bit bumpy, but this was pointed out before the U.S. Non-farm payrolls release. If the NFP beat the economist consensus estimate of 200k and Thursday’s low of 6195 held as a support that would allow the FTSE 100 to reach 6300. The index reached the high of 6296 on a NFP print of 211k compared with a median estimate for a 200k gain in a Bloomberg survey of economists.
Price action for today should remain bullish and I expect a pullback towards the 6195 to 6254 range to entice traders to buy with stops below Thursday’s low of 6195. While a break to the 6195 low may trigger a decline to 6155 which acted as resistance for much of the November 16 trading session.
There is no key data on tap until Tuesday night when Chinese exports and imports data are on tap. The data is being watched as it gives us an idea of how the Chinese economy is doing. Better numbers than expected may probably add to the global stock market risk appetite, while soft data may discourage long positions.
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Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.