FTSE100 holding on to 5200 . . . not anymore!

22nd Nov '11 by Steven Dotsch

9 comments 8455 reads

Yesterday the FTSE100 closed at 5223, some 140 points down, while today it closed another16 points down staying above the 'magic' 5200 level.

Some technical analysis for those of you interested from Digital Look

"By far the most interesting aspect of the top shares´ price chart is how last October´s highs saw it stop at exactly the level needed so as for it to have drawn a perfect 'pull-back´ towards the lows which the benchmark hit last March (now resistance)."

"Also worth taking into account, and when looking to the most extreme short-term, now that support at 5,360 has been lost the next level to watch comes in at 5,200. This level corresponds with the 61.8% retracement of the last leg up by Fibonnacci."

"What would happen if that support were to be lost"?

"Then statistically speaking (and by technical analysis) the chances of a return to the origin of that rise, at 4,870, would loom large. So long as the above does not occur - FTSE100 falling through and closing below 5200 - then we are willing to still admit the possibility that we are still in ´correction mode´, but only for so much longer."

Any technical analyst care to comment?

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Steven Dotsch

23rd Nov '11

The FTSE 100 was almost 0.7pc down to just above 5,160 points shortly after opening.

FTSE100 now well below 5150 . . . down more than 1%

Fangorn

Don't think we have hit capitulation yet.
Personally see the markets falling alot further from here if ongoing worries oer the US coincide with further Euriozone implosions...French downgerade, when it occurs, will be a shcoker. Certainly will be taking profits here and there where i can find them.

I fully agree Fangorn

I have just released an article why I am not buying at these price levels, at: http://www.stockopedia.com/content/why-i-am-not-buying-yet-62185/

24th Nov '11

The FTSE 100 has now fallen for eight consecutive trading days. Closing at 5,519 on November 14th the FTSE100 ended Today at 5,136 – 383 points down – a fall of almost 7.0 per cent.

In comparison, the most recent comparable drop occurred in 2003. That year, the FTSE 100 dropped from 3,974 on January 10, to 3,481 at closing on January 27 - a loss of 12 per cent over 11day down trading days.

Is this the bottom?

Let’s see what happens tomorrow . . .

Ooohps, 'spoke' too early: the FTSE100 closed today at 5,127.57 - so down over 8 trading days by 392 points, no change in percentage decline though

25th Nov '11

The FTSE 100 has opened down 0.2pc to 5116.8 - just crossed 5,100 level

London Stockmarket has now closed for the week. The FTSE100 has closed higher adding 37 points, or 0.7 per cent to 5,164.

2nd Dec '11

Earlier this week, in a swift move, China, the United States and Europe are making moves to add liquidity to the markets. Stockmarkets loved it! In fact, today, they still love it.

China announced that it’s lowering reserve requirements for banks, meaning that they are loosening lending after a year of tightening. The U.S., meanwhile, is looking to purchase more mortgage-backed securities. The Fed, in coordination with five other central banks, also nearly cut in half the rate at which foreign central banks pay to borrow U.S. dollars from 1.08 percent to 0.58 percent through Feb. 1, 2013. All that and 'talk' of an IMF bailout for Italy sent Stock markets soaring

While it buoyed stock markets, these actions, some of which were meant to demonstrate that there won’t be a liquidity crisis like 2008 as the European debt crisis comes to a head, will in fact be very inflationary.

Personally, I think it’ll do nothing for the global economy, though, it will indeed create liquidity and appetite for riskier assets.

FTSE100 holding on to 5200 . . . not anymore!

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Steven Dotsch

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