FTSE breaks out to the upside

The FTSE 100 Index starts the day breaking higher above an important key technical resistance level at 5640 (cash/daily rolling). This break out should push the market higher, as the range traders seek to cover any short positions. This technical breakout has a target level of just short of 5800; however true confirmation of the breakout is often only recognised if the market actually closes above  any resistance level. With no major economic numbers out today,  traders will be waiting until tomorrow for UK industrial production and manufacturing output.

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About Simon Brown
Simon Brown has over 20 years experience trading Derivatives on everything from Gold, FTSE to Dollar/Pound. Simon has lectured in Trading Psychology, Strategy and Technical Analysis, in addition to regular appearances on CNBC television. He is now Managing Director of ProSpreads.

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