FTSE 100 Index Futures Forecast November 16, 2012, Technical Analysis

The FTSE 100 futures fell precipitously during the session on Thursday as the 5700 level was violated. This level has held as support over the last couple of sessions, and the fact that it was broken down signals that we are ready to start falling again.

We currently see the 5650 level as significant support as well, and probably the bottom of the support level that was violated. However, as we have close towards the very bottom of the range of Thursday’s trading, this does suggest that we are about to continue falling. On rallies and show weakness, we would be sellers. On a break below the 5650 level, we would also sell at that point. Right now, we have no plans to start buying.