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Hugo in HTO Trading,

FTSE 100: Indecision in the air

The latest CBI/PwC Financial Services Survey showed a rise in business volumes for financial services firms but slowed in the three months to September as optimism levelled out.

The report revealed, business volumes increased at their slowest pace in two years, following nearly 24 months of robust expansion. But building companies, finance houses and life insurance business volumes all continued to grow at a healthy pace.

The Index fell more than 2.0% since the start of the month and plunged 6.5% year to date plus is in a well-established bearish phase since late July. Last week, FTSE 100 went back and forward without any clear direction but managed to close in the green near the open of the week, creating a doji pattern. The stochastic is showing a slight bullish momentum although is still below the 50 mid line.

Expecting an upward move to a weekly resistance at 6,277.5 on a break above previous week high at 6,135.5 (scenario 1) or a break below a key level at 5,977.0 may push downward the Index to Year lows at 5,760.0 (scenario 2).

UK100 is a CFD written over FTSE 100 futures.