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FTSE slips back from 4.5 year high

Monday, January 28 09:37:14

Britain's benchmark share index slipped back today from its highest level in four-and-a-half years, with some technical indicators suggesting that a recent rally would fade away in the near term.

The blue-chip FTSE 100 index was down by 0.1 percent, or 4.68 points lower, at 6,279.77 points by 0905 GMT, having gained 0.3 percent on Friday in a move that had pushed the index up to its highest level since mid-2008.

However, the FTSE 100 is now at a level where it was in "overbought" territory, according to technical analysts, which some traders may use as a sign to sell and book profits on equities in the near term.

The FTSE 100's relative strength indicator (RSI) is currently at 79.5 points - above the 70 point level which shows that an index is in technically "overbought" territory.

The FTSE 100 has also risen by some 6.5 percent since the start of 2013, meaning the index has already risen by more in January than it did for the whole of 2012, when it rose 5.9 percent.

"We're getting to the point where you'll get profit-taking. I wouldn't be buying at these levels," said EGR Broking managing director Steven Mayne. ( C) Reuters