CFD Traders Diary
Approaching choppy waters but bulls still in charge
7/4/2008
The response to yet another very poor set of economic figures in the US on Friday was once again very impressive, and various equity markets have hit or are close to their best levels since the beginning of the year. We are though approaching an area of fairly important resistance, and it might be that we see some pullbacks from here.
One sector that remains very well supported is the mining sector following various rallies in many commodities, although both gold and oil remain well off the high levels reached last month. Anglo American and Antofagasta are well up there with the leaders again today, but we would draw attention to the underlying lack of buying volume in the sector. Accepting there is still the possibility of more M&A activity, CFD traders should watch for any pullbacks on higher volume, as this could be a decent selling opportunity.
British Energy shares shot up on Friday and have rallied again as it looks as though there may be a tussle for control of the company, in which the Government still holds a substantial minority share. Press reports over the weekend suggested that Germany's RWE and EDF had entered discussions with Centrica about a possible bid, and although the shares are up to 745p mid-morning, a take out figure of 900p has been mentioned, so our long positions continue to look good here.
