Support 6299 6295 6240 6180 6139 Resistance 6328 6330 6345 6350 6422

Good morning. The FTSE100 ended a strong week on a stable note with a gain of just a few points. It’s promising to see that there was little profit taking after recent gains and so consolidation was the mood for Friday, but at least that short netted a few points. In terms of sectors there was no real trend either way, with special situations providing the biggest movers.

US & Asia Overnight from Bloomberg
Asian commodity stocks declined while consumer shares advanced, leaving a regional equity gauge little changed following last week’s rally.

Markets in South Korea and Australia edged up as Japan was closed for a holiday. The MSCI Asia Pacific excluding Japan Index was little changed at 420.55 as of 8:26 a.m. in Hong Kong, before Chinese markets opened, after climbing 2.4 percent last week.

With interest-rate futures now predicting a 68 percent probability that the Federal Reserve will raise U.S. interest rates next month and European Central Bank President Mario Draghi signalling he may soon boost stimulus, investors are watching economic data releases to assess global monetary policy divergence.

“Markets are going to be driven by expectations about the key coming events, which are the ECB next week and payrolls” in the U.S., Richard Yetsenga, head of global markets research at Australia & New Zealand Banking Group Ltd., told Bloomberg TV in Sydney. “Markets will be nervous ahead of that.”

John Williams, president of the Federal Reserve Bank of San Francisco, said at the weekend that there was a “strong case” for a December rate hike, a day after his counterpart at the St Louis Fed, James Bullard, said the pace of any increases will be data dependent. The comments came after Draghi said ECB officials “will do what we must” to boost price growth, weakening the euro and fueling gains in shorter-maturity German bunds.

Regional Gauges
The Kospi index added 0.2 percent, with volume 16 percent below its 30-day average. Australia’s S&P/ASX 200 Index gained 0.2 percent and New Zealand’s S&P/NZX 50 Index rose 0.8 percent.

E-mini futures on the Standard & Poor’s 500 Index added 0.1 percent. The underlying gauge gained 0.4 percent on Friday, bringing its gain last week to 3.3 percent, the most since December.

Commodities producers accounted for the biggest declines on the Asia-Pacific regional gauge. Copper in New York traded near its weakest price since 2009. BHP Billiton Ltd., the world’s largest mining company, declined 2.5 percent and Rio Tinto Group slipped 1.1 percent in Sydney.

Woolworths Ltd. led consumer shares higher, climbing 2.9 percent, the most in a month, after the Australian Financial Review reported private equity firms are eyeing the retailer’s Big W unit.

Futures on Hong Kong’s Hang Seng Index added 0.3 percent, while contracts on the FTSE China A50 Index gained 0.4 percent in most recent trading. [Bloomberg]

FTSE Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

We have a pretty decent rising 30min channel with support from the channel also coinciding with the 200ema at around the 6300 area. As such there could well be some support here this morning, and if we follow Asia and the ASX200 then we should have a fairly flat to slightly bullish day. If the bears break through that 6300 are then a decline to the bottom for he descending channel looks likely, with support at the 6240 area. Todays pivot is 6328, so if the bears can break the 34sma on the 10min at 6317 initially, a rise to that pivot looks likely. The 30 minute chart has 25ema resistance initially at 6320 which is why I think the bulls will have some initial resistance here. If the bulls really go for it and break the 6345 area then 6385 looks possible for the top of the 30min channel, though with the 20 day Bianca at 6350 I think the upside might be limited today.

38 Comments

  1. Morning all,just came out of an HSBA long,clearly the best looking bank with the rest already testing support,expect to buy it again in a week or so.Be good to see CNA and their oh so qualified mgmt get above the last D buy price;sell the winner and hold the loser isnt a good way to start the week 🙂 still looking for 10p less than citibanks 260 target although b/e would be extremely tempting too 🙂

  2. Good morning All,

    I’m short on the Dax 11090 – 15 point stop target is 11000. I will move to b/e when it gets to 11070-60

      1. Hi Senu, had order for 6328 short as well, highest bid I think was 6327.8, missed our order. Short was off pivot. 🙁

        1. That video is excellent WSF,thanks for sharing,it pretty much sums up the emotions of failure and the strong will needed to overcome it,to evaluate what we have learned,and then to apply what we have learnt and come back stronger.best of luck WSF as always.

  3. City Index regularly downtime and app freezing at the worst moments. How can a company owned by NYSE listed company have so much downtime? Are they a professional outfit or what? I could have banked profit of £24 this morning, not much you might say but it’s happening to loads of other people so it adds up, but by the time the site started functioning again much of the gain disappeared. There are sites with hundreds or even thousands of times the traffic as City Index at any given time who rarely ever see any downtime. Some of the reviews of these spreadbetting companies over at Trade2Win don’t fill me with confidence. Similar things have happened to me in the short time I have been trading. I have had one or a combination of numerous downtime, app freezing, missing prices, or missing trade tabs in the few weeks I have been trading with them.

    Just go over at Trade2Win and read the reviews of IG, City Index, CMC, etc. trust me, it’s not guys simply guys venting their frustrations because they couldn’t make a success of it, there may well be foul play going on.

    1. Anton,it is just how it is,letting it mess up your attitude is more damaging than the event.During the Greek thing I had a dispute with them that basically came down to no Video of what is happening on your screen then tough and if you think about it that is why people record the day,nobody really watches it later to analyse their real time decisions.

    2. The only thing about Trade2win is some of the posts on there are years old. It therefore looks like spreadbet providers are super dodgy and out to get you when there are simply a few isolated incidences spread over a couple years. If you’re worried about the platform/app freezing then always trade with stops and limits.

    1. There’s one of those engulfing candles on the 10 min dow Senu that you taught me about last week.well it’s almost,it didn’t quite go down as far as the previous candle but it was close.

        1. That’s about the peak at 4pm last Friday,be interesting to see what level Ftse hits if Dow hits your 914.

          1. looking at 15min Ftse chart I see where you have got your 30 level from,I think I would be happier to wait for above 50 myself

  4. Senu seems it cant break pivot yet, so tried some small scalps shorts off 25 region, twice for +8 each time….with tight stop. Wont trade ftse after hours now.

    1. yes.. range bound throughout the day, should go with dow in the evening. My order did get filled at all, frustrating 🙁

  5. Evening All,
    Today’s trades at 6294 & 6286 both got Stopped out at 6277 ! They would have been sound entries but wasn’t around to change the orders. The Lo was 6264.
    As I’m out again tomorrow – I was going to set the following orders.
    Long 6237 (S2 app.)- Tgt 6276 – Stop 6220
    Short 6330 (Res. Area) – Tgt 6290 – Stop 6346

Comments are closed.