FTSE continued lower to 200 week moving average & important longer term Fibonacci support at 6095/85. We did over run as far as 6043 but buying in to
Ftse December contract Daily Forecast - 17 October 2014FTSE continued lower to 200 week moving average & important longer term Fibonacci support at 6095/85. We did over run as far as 6043 but buying in to weakness did work in the end as hoped. To repeat, 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 as the outlook turns positive. We must beat immediate resistance at 6165/70 for a more positive outlook & target 6095/6200 then 6215/20. We could even continue higher to target resistance at 6240/45. A high for the day is expected here but shorts need stops above 6270.
Failure to beat 6165 should trigger a move lower towards 6125/20. We are buying in to weakness but below here look for support at 6100/90. If this does not hold the downside look for a buying opportunity at 6055/45.
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