FTSE100 Bullish Start to the Week but May Be Limited on Upside -- City Index UK

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City Index
Jan. 15, 2013 11:22
LONDON--(Korea Newswire)--City Index UK -- Heading into this week the markets may continue to enjoy following through on last week's momentum to the upside. However, both the FTSE100 and Dow Jones are close to potential reversal levels.

If the reversal levels manage to prevent a trend continuation then chances are we may be setting up for a correction to the downside. Rather than predict a definitive move, the markets would be the key voice in providing the signals of turning bearish. The all important “trend” remains bullish and this should not be ignored as such. Given the recent bullish swings the indices appear to be setting the stage for a minor correction.

See Charts & Read Full Article: FTSE100 bullish start to the week but may be limited on upside

FTSE100 almost at 6150 price target
As we approach the key price target for the FTSE100 at 6150, the price bars are trading in a narrow range but with a bullish tone. Once the target has been achieved, if the index can maintain strength, then we could see a reach for 6200.

But it would be important for the index to not trade below 6100 which for the moment should provide short term support for this week. If a key reversal occurs and a break of 6100 takes place then we may see a move lower between 6000 and 5900 as a base level before the index continues higher. Momentum remains bullish until we see major signs of a trend reversal.

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