Bulls waiting to lift Footsie
TRADERS' nerves got the better of the whole market on Monday as blame for the bomb attacks in Madrid was being pointed more in the direction of al-Qaeda, writes William Akerman.
Things are likely to remain jittery and spread-betters are eagerly awaiting Wednesday, for some concrete news to act upon. At 9.30am, the Bank of England will release the 'minutes' of its last interest rate meeting; and at lunchtime, Chancellor Gordon Brown will present his Budget.
FTSE 100
THE Footsie ended yesterday at 4412, its lowest level for the session. That means in the last three trading days, the UK's leading index has shed nearly 150 points.
What is not in doubt, is that investors were caught out last week, with most closing their long positions as fast as possible. Interestingly, and perhaps not surprisingly, sentiment still remains bullish, with investors picking their moment to re-establish these positions.
Many are waiting for support levels at 4,390 and then major support at 4,345, before buying again. They are also keeping very disciplined stop-loss orders.
British Airways in trouble
THE world's favourite airline came under intense pressure, with investors exiting the stock as growing evidence emerged that al-Qaeda was responsible for last week's attack on Madrid.
In fact yesterday saw British Airways the biggest blue-chip faller, with a dive of 19 1/2p to 269p. Traders are taking short-term positions, but once again the majority are looking for a buying opportunity.
Mmo2
THE people's favourite telecom stock was under pressure yesterday following a long period of being one of the Footsie's most solid risers.
Some profit-taking has forced values lower, but dealers are reporting new buy orders at the 95p area, beneath current levels of 100p.
In summary
SPREAD-betters are overall very optimistic, predominantly looking for buying opportunities. This is to be expected, as for now the Footsie remains in its long-term up-trend. Keep stop-loss orders in place though!
Our spread-betting round-up is written by easy2spreadbet.com. For FREE membership to the firm's TradersClub and more information on spread-betting go to www.easy2spreadbet.com.
