FTSE continued lower & unexpectedly crashed through crucial support at 6255/45 to hit all our targets down to 6135/30. We bottomed exactly here at
Ftse December contract Daily Forecast - 16 October 2014FTSE continued lower & unexpectedly crashed through crucial support at 6255/45 to hit all our targets down to 6135/30. We bottomed exactly here at 6124 & there is a very good chance we have seen the low for the 4 week sell off. *It is now too risky to run shorts.* I expect a strong recovery in to the end of the month before another big drop in to year end. We switch our strategy to buying in to weakness. Today we should start the recovery & need to beat immediate resistance at 6220/25 to target 6275/80. We should struggle & a high for the day possible but above targets strong resistance at 6305/10. Exit longs & try shorts with stops above 6330. However be ready to go with a break higher using 6310/05 as support for a move towards 6375/80.
Buy in to any weakness down to 6135/25. However be aware that we have 200 week moving average & important longer term Fibonacci support at 6095/85 for another excellent buying opportunity. Only a close below 6060 tonight turns the outlook negative again & could send prices in to another free fall.
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