Charts: One Week Doesn't Make a Bottom

Monday, 16 Mar 2009 | 7:19 AM ET

The FTSE 100 index's 3,750 close last week was "quite exciting," according to Nick Batsford, technical analyst at Hobart Capital, said Monday. "People are almost turning bullish," he added.

Good Week for Stocks, But No Bottom Hit Yet
The FTSE 100 index's 3,750 close last week was "quite exciting," according to Nick Batsford from Hobart Capital. "People are almost turning bullish," he added.

"We hit 3,475 which is a massive down level in recent sessions, and it held," Batsford said.

But he said he is not "absolutely convinced" that the UK index has hit a bottom yet.

"There's just nothing to tell us we've found a bottom yet," he told CNBC.

"People are looking to sell the rallies. For me, we really need to get above 3,850, which is the 21-day exponential moving average," Batsford said.

After the S&P 500 index hit a low of 666, it had a "technical rebound" and held a massive "sell" signal in the 800-820 area, according to Batsford.

On Monday, London's FTSE 100 index was up over 2 percent, while futures indicated a positive open for the S&P 500 index.


Contact Europe News


    Get the best of CNBC in your inbox

    › Learn More

Europe Video

  • Jan Dunning, CEO of St Petersburg-headquartered hypermarket chain Lenta, says the situation in Ukraine has had no impact on the group, as consumer confidence remains unaffected in Russia.

  • Vincent Deluard, European strategist at Ned Davis Research Group, says the strong euro is a problem for the region's companies, especially for the large exporters.

  • European shares closed higher on Thursday as investors brushed aside concerns regarding Ukraine and focused instead on Wall Street earnings and the latest U.S. jobs data.