6 up-weeks in a row and a gain of almost 750 Pts since FTSE 100’s October low at 6042.5 has seen investor sentiment surge above the 50,100 and 200 day average rates. However, with daily and weekly signals overstretched with futures trading back towards September’s 14 year highs Monday’s trading has seen profit taking selling, though prices remain firmly inside Friday’s up-day.
There is no clear sell signal, but the loss of impetus has left a cautiously negative bias, so with this in mind the outlook for Tuesday is to sell modestly on the open and then at 6760.5/65.5, yesterday’s high, with a stop loss at 6781.0, Friday’s top. Targets are to 6729.0, the last 1 hour low, 6713.5, yesterday’s base and 6691.0, Friday’s low trade.