Bullish signals for FTSE 100 on the week are so far being confirmed, investors buying futures on Monday to post a 3rd higher daily low & high in a row and for a strong 63 ½ Pt gain. The call remains a cautious one though, as futures are trading close to their 200 day average rate, and with intraday sentiment overstretched, there is the potential for bulls to take profits.
However, with no sign yet that demand is ending, the outlook for Tuesday is to buy modestly on the open and then at 6658.0, the last 5 hour low, with a stop loss at 6629.5, a 50% pullback to the gains posted since Wed. Targets are to 6700.0, 6717.0, a 78% recovery to the Sep-Oct losses and 6775.0.
