Sunday, January 27, 2013

Annual Forecast on FTSE 100 (2013)

The outlook on the FTSE 100 (LSE:UKX) remains bullish. The bulls have been in power for a long period, and would continue to be in power. This fact is nothing strange: a coffin that has spent 3 years in a grave is no longer a stranger to the grave.

On the chart the ADX period 14 and the MACD default parameters are used. The ADX line is going almost above the level 30, while its DM+ is far above DM- (meaning bullish pressure). The MACD signal line and histogram are far above the zero line; with the signal line being far above the zero line. There is a bullish Confirmation Pattern on the chart. So irrespective of the current market situation, the price is expected to trend upwards this year. The market bias is also determined by fundamental figures. Since this is no longer something new, prices move according to the results of fundamentals. One thing that is of a great use is reliable fundamental expectations. These reveal cogent data including other relevant information.

This article is ended with the quote below:

“… Because traders and investors deal with uncertainty in every trade, our decision-making biases and processes can either make us or break us as traders!” - D.R. Barton, Jr

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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