FTSE 100 Index Futures Forecast November 2, it 2012, Technical Analysis

The FTSE 100 had a stellar day after initially falling. The bounce that we saw in the afternoon formed a nice-looking hammer, and it just underlines the fact that this market has a built in bid to it. We still see the 5900 level as a potential resistance area, and think that it runs all the way to the 6000 level. However, this market has shown strength over time, and we think that this slow gradual climb higher will eventually break that resistance area.

With this being said, we believe that buying on the dips is a very feasible strategy in this marketplace. A break of the Thursday highs is technically a buy signal as well, but we may wait until the end of the session as the US releases its jobs number today.