THE TIPSTER WATCH THOSE RESISTANCE LEVELS
HOPES of the recovery rally continuing apace were dashed on Friday when the FTSE 100 closed down, putting last week’s losses at 1.9 per cent. The blue-chip index has struggled to stay consistently above the 4,400 mark, a key psychological barrier that the market will continue to target this week. Any strong break through resistance will bring buyers into the market while shorters could look to enter at just below 4,400, placing a close stop.
The uncertainty in the markets about the rally’s future has also put a ceiling in the July 09 crude oil price at $60 a barrel. The market is struggling to decide whether bottoming out is reason enough to push prices higher. But speculators are continuing to have a disproportionate influence over oil so sentiment will invariably prove more important than the fundamentals. CMC Markets is quoting a spread of $57.77-57.82.
Gold has done well from a return to risk aversion which looks like continuing next week, especially in light of poor economic data from the Eurozone and US, which was released on Friday. It has been trading around the $900 mark for a while , regularly making attempts at trying to break through the $920 level. It has now achieved that, trading at $926 last week and so momentum seems to be in favour of the buyers. Capital Spreads is currently quoting a price of $926.0-926.5 for rolling gold.
It has been a rocky ride for mobile phone giant Vodafone but its full-year earnings are due on Tuesday. Any positive outlook for the forthcoming year could fuel something of a renaissance for the stock and spread betters could look to buy at the current price. CMC Markets is quoting a spread of 124.60p-124.70p.
In the smaller caps, we hear that a consortium of Gulf-based investors headed by Iranian David Shamoon seems to be be building a large stake under the radar in FTSE Fledging property group Minerva. While details of their current holding remain sketchy, it may be as much as 10 per cent. Many believe Shamoon could be putting the pieces in place for a takeover. It could be worth going long on Minerva in anticipation of this. WorldSpreads is offering a price of 15.25p-15.50p.