Limited gains for FTSE index

After solid gains in Tuesday’s trading session, Wednesday has seen a follow through in early trading through but gains have been limited.

The FTSE 100 has seen a reversal at 5480 and attempting to trade around the psychological 5400 level. The afternoon session may see further weakness into the close if the Dow Jones consolidates after yesterday’s strong move. Support for the FTSE 100 is at 5320 and on an intraday basis we have 5360 which should hold the index for today. Momentum remains mixed on the hourly timeframe and the index will need to climb above 5435 to regain a bullish stance.

With the Dow Jones a break below 12075 would suggest a pullback towards 12028 may be the game for today. For bullish continuation the index should try to clear above yesterday’s high of 12116 to aim for 12135 this afternoon. Looking at short term timeframes the index does appear to be overextended but with such a strong session on Tuesday any pullbacks could offer buying opportunities. Key support for the Dow Jones into the afternoon is based at 11972 if we see a sharp pullback.

Gold has experienced a positive day after finding recent support at $1575 and should continue its upwards move into the Asian session today. Although the move to the upside could be limited due to the trend being bearish the commodity may seek upper objectives at $1650 – $1665 initially followed by $1690 as long as Gold remains above $1590 over the next two days.

GBP/USD started the morning session on a high but momentum has waned and taken the pair lower before the start of the US session. If the pair falls below 1.5669 there could be a continuation lower to 1.5640 otherwise the afternoon session holding onto today’s positive mood may attempt to take GBP/USD back up towards 1.5740.