Charting FTSE 100 Technicals

The following multi-time frame momentum analysis for the FTSE-100 highlights deteriorating hourly technicals, eyeing the 5800 figure, followed by a possible retest of the October 26 trendline support near 5795-5797.

Four-hour stochastics showing higher lows but also suggesting further pullback towards the 50 stochastic figure, which supports a price pullback towards the trendline and makes the case for 5797-5800.

Daily chart showing the price at the center of a symmetrical triangle, and just above the 55-day moving average of 5806. Despite the improving sochastics on the daily chart, it appears FTSE-100 will retest the 5800 figure.

A daily close FTSE-100 below 5794 would threaten the October 26 trendline and open the door for 5770.

In the Dow-30, hourly technicals are appearing toppish, and likely pulling back towards the 200-DMA near 13000. The 200-DMA in the Dow-30 is a significant technical level and difficult to take out.

On the fundamentals side, Thursday’s release of the October manufacturing PMI (9.30am London) expected at 48.0 from 48.4. At 12.15 pm, US October ADP survey (on private sector payrolls) expected at 135K from 162K.

UK companies reporting earnings this week: http://www.cityindex.co.uk/market-analysis/company-reporting-dates/1299642012/companies-reporting-for-week-starting-october-29-2012/

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