FTSE 100 May Reach Its 2016 High
- The FTSE 100 is short-term bullish above Friday’s low of 6034.
- The U.S. ISM manufacturing index beating economist expectations allowed the FTSE 100 to trade higher.
- Key data for today: U.S. ADP Employment Change report, U.S. Crude Oil Inventories, and the Fed’s Beige book.
The FTSE 100’s breach of the January 29 high of 6129 triggered buy orders as projected and the short-term trend is now bullish above Friday’s low of 6034. The next strong resistance level and likewise target for bullish traders is the January 29 high of 6322. Traders who did not enter in line with yesterday’s breakout might try to enter on a pullback to the breakout level of 6129 with stops below Friday’s low.
Supported on U.S. ISM Manufacturing
While the FTSE 100 was bid from the start of yesterday’s session and made an attempt to break the January 29 high, it was not until the release of the U.S. ISM manufacturing index that the FTSE established itself above the January 29 high.
The ISM beat a Bloomberg News economist consensus projection by rising to 49.5 vs. the 48.5 expected. The chair of the ISM, Brad Holcomb said of the ISM Index that it ‘may have found a bottom.’
Key data for today is the U.S. ADP Employment Change report and the latest Bloomberg News survey projects that 190 000 new jobs were created, lower from 205k in January. U.S. Crude Oil Inventories are expected to rise by 3.4m barrels and in the evening the Fed will publish its ‘Beige book.’
FTSE 100 | FXCM: UK100
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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