The benchmark index of United Kingdom, the FTSE 100 Index will experience a total surge of 7.8% by mid-February, as predicted by a Technical Analyst of the Credit Suisse Group AG. The FTSE 100 Index, incidentally, is already trading near its highest value in the last 4 and half years. The Departmental Head of Technical Research Department of the Credit Suisse Group AG, David Sneddon, stated that the gauge will be reaching as high as 6600. The gauge reached its highest peaks in years 1999 and 2007; in New Year, it may actually reach any of those peaks. Incidentally, the gauge is currently predicted to be bullish, as right in last week, the same went ahead of its 2011 weekly high.
Sneddon stated that the FTSE 100 Index is still at a better figure if compared to the 2011 peak. He commented that the sentiment for the FTSE 100 Index has been bullish all through; however, a value above the 2011 peak is reinforcing the same further.
Today, the FTSE 100 Index has changed little and is at 6121.28 currently. Thanks to the decision of coming up with the budget deal taken by the US policy makers, the index has been greatly helped. The gauge in 2013 has increased by 3.8% on a total.
In last year, the UK stocks posted a rally of 5.8%. The surge was less in comparison with almost all the other European markets. However, Portugal and Spain were exceptions as these markets had worse results in comparison with that of UK.
While talking about the analysis, Sneddon commented that it is important for the benchmark gauge to go past the 6376-6396 range which was last observed in 2008. If the gauge is able to go beyond this range, it can be expected that the stock will have further gains. If such a situation arises, it will be interesting to see if the UK market can sustain the immediate break to a higher level. Sneddon stated that the UK markets, being on a medium-term bullish range, are looking pretty good to post high gains in future.
For this particular technical analysis, a proper study on the price chart was done by the analysts and the investors. Any information related to trade volume was also considered to predict changes in the index, commodity or security.