Mark Austin FTSE Trading Update - 12 April 2011

Good morning

Our medium term analysis remains the same calling for a decline to 5720.

Yesterday's close for the market was negative as the FTSE closed just under 6055.  This is negative as the FTSE made a new high for the day but then closed under this major support level at 6053. As we know 6055 has been a key focal point for the last 2 weeks and regularly mentioned.

On the short term analysis we have just filled a previous closing gap at 6007 and for continued selling we need the market to break 5990 where the 10 day moving average currently lies.  If the market moves below 5990 we can conclude a short term top is in place.

Mark Austin FTSE Trading Update - 11 April 2011

Good morning

Quiet activity continues over global markets and the FTSE looks to be opening in familiar territory.

The bulls are certainly resilient at present and continue to buy any dips on the back of negative news. 

Our current analysis continues to call for a short term correction to 5720 but the price action is not supporting this view at present.

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Mark Austin FTSE Trading Update - 8 April 2011

Good morning

The FTSE continues to consolidate above 6000 in a very quiet week for markets.

We continue to see minus development at 6055 and the overall analysis remains the same.

With futures trading close to 6055 (pre open) the reaction at the open may pave the way for the day.

Mark Austin FTSE Trading Update - 6 April 2011

Good morning

Yesterday was another day of flat trading across major global markets. As the FTSE is set to open in the same position my overall analysis remains the same.

One thing I will add is we saw an inside day yesterday which means prices remained within the previous day's range.  This often signals a reversal and strengthens our analysis that we will see a correctional decline towards 5720 before we make new highs above 6106. 

Mark Austin FTSE Trading Update - 5 April 2011

Good morning

Strong resistance lies at 6055 and this should prompt a negative reaction.  The top of the channel also fits well for a failed double top scenario.

For now with the price action above 6000 we may see continued strength towards 6055-6090 before the decline starts.

A move above 6120 invalides this analysis and the impending decline to 5720.

If the longer term trend was down I would be jumping into this move however as the trend is up we will have to be patient and wait for price action to offer a complimentary signal.

Mark Austin FTSE Trading Update - 4 April 2011

Good morning

A very positive close to the week on Friday with the FTSE closing above 6000.  

As I mentioned on Friday the 1st of the month is when funds commit large cash amounts. If the general view is that a floor is in place at 5600 fund managers will be keen to invest and not miss the next leg up for this bull run.

With the trend up we want to positioning long for medium term trades. In the short term amateur traders will be using a close above 6000 as a reason to enter the stock market this week so we may see a decent correction very shortly.  This is also confirmed with the fact that we are at the top of a horizontal trend channel that is running between 5598 and 6055.

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Mark Austin FTSE Trading Update - 1 April 2011

Good morning

Yesterday's last minute flurry of selling provided the retest at 5900 but also gave 2 negative signals:

1. Negative outside day. The FTSE made a new high and closed on a new low when compared to the previous trading day.

2. A close under the 50 day moving average at 5935.

If we see acceptance under 5900 again that will provide a sell signal. 

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