Footsie Fortunes

LAST week we predicted the index would target 4800 as a technical and psychological level. And that's exactly what happened as continued optimism pushed the Footsie firmer.

But as this relief-rally fades, the future is slightly less certain. Looking at the charts the market is in a 'make or break' zone, and sellers could push prices lower to an old October high level at 4735.

But having said that (and yes this does sound like I'm covering myself for either eventuality!) the trend is just about up.

Today's move back through 4800, taking the rise in 2004 to 6.6%, has further strengthened the case for the upside. Not bad considering the political uncertainty and rocketing oil prices.

The news is even better if you've been buying mid-cap stocks as the FTSE 250 is up a whopping 13%! We've six weeks to go before year-end and if pushed to make a call then this is it.

I feel from a technical viewpoint that the FTSE 100 has further to go on the upside. The market is currently sitting in 'no-man's land'.

But if the Footsie convincingly breaks and closes through 4800 then a final positive push this year will carry prices towards 5000.

Footsie Fortunes is written by William Ackerman of Quantigma - a firm specialising in tools for technical analysis. For more on technical analysis, go to Quantigma.com

William is hosting a two-day 'Trading Psychology' event – a must for those serious about trading. Visit www.quantigma.com/seminar for more information