FTSE Outlook for 2nd March 2009

Whichever way I look at it, FTSE is nowhere near looking healthy. No talk of "green shoots" here yet. Having anchored the grid at the high of 6th Jan 2009, we can see FTSE has travelled a full 360 degrees on the Square of Nine chart. Normally, we would expect a good bounce at this level and a possible reversal. FTSE appears to have attempted that for a couple of days and given up.

The index has closed below the 360 degree line (3850.77) and that in my opinion does not harbour well for FTSE. I'd want to see it climb back above that line to be convinced of its health. If it fails to do that, I dread to think where the index will go. Possible medium term targets could be 3387 and even 3036! But for now , let us focus on Monday. Given below are certain targets and levels, which I hope will turn out to be of some use.

Possible Upside Target: 3990
Possible Downside Target: 3680

Bullish above 3860.5737
Bearish below 3799.6064