After trading lower for three consecutive weeks, the FTSE 100 index traded in the positive territory in the previous week and ended at 6334.63 on Friday, after notching a high at 6360.73. On the weekly chart, although the MACD is trading in the negative territory, the RSI and stochastic indicators are pointing north, reflecting at a bullish technical picture. Daily MACD is attempting a signal line crossover from below coupled with RSI and stochastic indicators trading above their midlines, further endorsing the bullish view. 100day SMA (currently trading at 6365) is acting as a key daily resistance, followed by the psychological 6400 and 6453/55 levels. A move back above the latter might trigger further upside momentum in the index. On the downside, key daily support is situated at the 20day SMA (currently placed at 6319/15), followed by the next ones at the 6268/65 and crucial 6225 levels. A breach below the latter might lead to bearishness in the index
Cashflow accounting – The need for consistency
According to the US Securities and Exchange Commission, “Cashflow statements report a company’s inflows and outflows of cash”. This is such a simple and obvious statement. Unfortunately, the failure of accounting bodies around the world to