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UK100: Makes a new year high

Yesterday European markets closed lower, with Greece in focus as Greek and German leaders meet amid tensions over Athens’ bailout program.

Today on the economic agenda we have the consumer price index (CPI) in February from the UK that is expected to fall from 1.4% to 1.3% and the producer price index (PPI) is also expected to fall from 0.5% to 0.4%. On the other side of the Atlantic in the US we have the consumer price index (CPI) in February that is estimated to stay unchanged at -0.1%.

On yesterday session the FTSE 100 initially fell but found enough buying pressure at a daily support to turn things back up and closed near the high of the day. The index is still in a bullish phase and is trading well above the 10 and 50-day moving average. The stochastic in showing a overbought market but even with the Index well into overbought territory, we should not fight the strong upward trend.

Expecting an upward move to a Fibonacci extension at 7,265 on a break above a Fibonacci level at 6,992 (scenario 1) or a break below a daily support at 6,893 could pull the Index down to a daily support at 6,792 (scenario 2).

UK100 is a CFD written over FTSE 100 futures.