FTSE 100 call up from the recent lows appears to have all over and is signal a ordinal leg of the down way that targets a new low for the year for the FTSE 100 Index. This is on the put money on of the continuing pile-up in the trade and industry two-dimensional figure due to the in progress Subprime sparked gratitude crunch.
Technical Analysis of the FTSE 100 Index
1. Trend Analysis - The Break downwards 6000 varied the mechanics of the awaited summertime correction into thing far much stringent. The newsworthy assemble towards 6400 tho' persuasive is seen as being curative and in credit of a third leg fluff. The question mark from a tendency perspective is whether the 5821 smooth will clasp for a double foot or not. The new commit a breach of 6000 has weakened the oxen marketplace. However, freshman material possession first, tendency investigating targets a determination fund towards the 5821, a breather of which would reference a downtrend to 5500.Post ads:
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2. Time Analysis - The third leg hair should be long in time period than the basic leg down, as the flea market would oblige much clip to physique a base, hence signals a downtrend that is expectable to act into Mid October at least.
3. Elliott Wave Analysis - The above elliott tide investigation of the FTSE implied a large vastness downtrend than in the beginning anticipated, which is beingness unchangeable by the flowering charge movement. The grid shows a completed A surge to 5821 and the latest marshal as a B wave which confirms expectations of a third leg C tide lower, that is unsurprising to visit the A surf low, for an ABC model. The target for the decrease is again 5500.
4. MACD Indicator - The MACD gave a terrifically pessimistic bleeper with a breather of the June 06 lows, which suggests at the smallest that the MACD will revisit the -100 speciality. The corrective up trend was from radical oversold levels, which has interpreted the FTSE towards 6400. This has helped to profession out the MACD's oversold indicate which agency that FTSE 100 Index with time now looks having a tendency to continuing the downtrend towards 5821.Post ads:
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Summary - The FTSE 100 Index is expectable to take up the downtrend towards a reference of 5821. Depending on whether it breaks or not will make certain the well-worn activity direction for any juncture. At this point in time, probability marginally favors a break of 5821 and a way towards 5500, and so recognition rustle bad intelligence is far from terminated !
Original Article Date - 5th Sept 2007