Will the FTSE 100 reach 6000?
City Index October 27, 2010 9:22 PM
<p>There has been a lot of speculation lately about whether the FTSE 100 will hit 6000 again after charging so firmly higher over September and […]</p>
There has been a lot of speculation lately about whether the FTSE 100 will hit 6000 again after charging so firmly higher over September and October. City Index Chief Technical Analyst Sandy Jadeja gives his thoughts.
Since the July low of 4790, the FTSE 100 has gained 20.81% and it seems that there is more to be added given the current move.
So far the index has broken above resistance levels and momentum has been strong. It is also trading above its 20-period moving average, which suggests that if the index does not reverse right now then the odds are that we could be looking at the key psychological level of 6000.
Technically speaking there is a major resistance band between 6047 – 6117. At that point all the bulls will be screaming that we are in a bull market and they may even be right. But historically when markets reach major resistance levels there is often a sharp reversal. At this point all we can do is wait patiently and trade with the current trend.