Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
FTSE 100 Turns Bullish On a Break To 6169

FTSE 100 Turns Bullish On a Break To 6169

Alejandro Zambrano, Market Analyst

As long as the FTSE 100 trades above the December 21 low of 5995, the overall trend remains bullish and if traders opt to ignore yesterday’s soft U.S. ISM (48.2 vs. the 49 expected), I would find the FTSE 100 more interesting than the DAX 30 on a stock markets rally.

A reasonably good sign of a low forming coupled with the sentiment turning bullish would be a break to today’s high of 6169. If this happens, I would expect price to reach the December 29 high of 6319 over the next few days.

In the alternative scenario, FTSE 100 traders give up their bullish bias and a break to the December 21 low at 5995 occurs. If this happens, the next support level and target for bearish traders will be the December 14 low of 5858.

To understand how the risk-reward ratio is crucial for profitable traders, see The Traits of Successful Traders Guide.

Bullish or Bearish: What Is More Likely?

Given the soft ISM reading yesterday, I would expect bearish traders to dominate, a soft ISM tending to prelude a general slowdown of the U.S. economy. In these circumstances, lower stock markets are warranted and with this in mind, I suspect that the FTSE 100 will remain soft over the coming weeks.

There is no crucial data on tap today, and the next interesting economic release will be the Caixin China PMI Services on January 6, 01:45 GMT. The markets expect a reading of 51.2 (Bloomberg News Survey). A better than expected reading is however most likely needed in order to calm the nerve of stock traders.

Please add a description for the image.

--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com

Contact and follow Alejandro on Twitter: @AlexFX00

Learn more about trading and join a London Seminar

To be added to Alejandro’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES