Spotlite FTSE 350 Weekly Technical Market Report – Fridays’ action saw the FTSE100 add another 45.4 points, or 0.8%, lifting the index clear of the early July resistance and extending the recovery uptrend

A surprisingly strong recovery for unloved IT Hardware sector saw this index up 8.3% on the week. However, we would not be over-keen to rush into this area at present, as the move takes the index back up to the well-established downtrend from the May highs. Health looks more interesting, but is basically a range-trader, so further upside gains may be limited.

There were no sector moves down on the week with modest gains across the board.

Miners continue to hold the key to the market’s future over the medium term and stocks within this sector are now showing more positive action, with Friday’s session seeing a P&F breakout for Lonmin. As with many miners, the stock is still stuck below its spring highs around 3,100, but appears to have enough energy to retest this barrier. Should the miners make this move en-masse, this will carry the index through the highs. From the sector, only Aquarius Platinum has made this move so far, although Xstrata looks promising, boasting the biggest gain on the week at +18.3%, while Kazakhmys proved no slouch at +11.9%.

Worthy of note is coal-fired power station Drax. The stock is becoming a momentum play, now edging above its recent highs to extend the orderly uptrend. Upside breakouts have also been seen from Scottish & Southern and Scottish Power, and stocks in this sector look well-positioned to extend its gains.