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Charts: FTSE Headed for 'Severe Decline'

CNBC.com
Thursday, 31 Dec 2009 | 6:49 AM ET

The FTSE-100 may continue its run higher for another month or so, but the UK’s main stock index faces a "severe decline" early in the New Year, Sandy Jadeja from SignalPro told CNBC Thursday.

Charts: FTSE Headed for 'Severe Decline'
"My expectation for the FTSE-100 is that the year 2010 is going to see a high followed by a severe decline. And I don't think we're going to see lows until 2012, possibly 2013," Sandy Jadeja from SignalPro told CNBC Thursday. Jadeja expects the reversal to occur in late January or early February.

"My expectation for the FTSE-100 is that the year 2010 is going to see a high followed by a severe decline. And I don't think we're going to see lows until 2012, possibly 2013," Jadeja said.

"Technically speaking the FTSE really is at a critical level… 5,495 to 5,550 (points) is an area where we may see a reversal, but I think the reversal is going to happen late January, possibly in February," he said.

Jadeja said that from a historical point of view, the years ending with a zero such as 2010 end up quite negative. The performance of years ending in 2s and 3s is also quite bad, he added.

- Watch the video above to see the full interview with Sandy Jadeja

For the Investor:

Contact Europe: Economy

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