29th September 2017
It was a bit of a slow rise but being bullish yesterday was the right stance as the S&P 500 and Russel 200 both closed at new record highs. The US rose on hopes U.S. tax reform will aid economic growth. Meanwhile, Asian stocks outside Japan were mostly higher on the final trading day of what’s been a strong quarter. I am expecting today to also see a rise on the FTSE 100, despite it being the last trading day of the month and “usually” weaker. I am thinking a rise to the top of the 20 day Bianca channel at 7347 looks distinctly possible, if the initial resistance at 7330 can be broken. The ASX200 (Australia) had a decent bullish session to close out the month also.
FTSE 100 Outlook and Prediction
It’s a Friday which can be a bit weird, and the last trading day of the month, which can be a bit bearish. However, I am thinking that we will also end the month strongly following Asia’s lead and building on the S&P closing at record highs. The FTSE still has some way to go to start making its own record highs (above 7700) but we might well see a decent Q4 this year.
Anyway, onto today. Initially there is resistance at the 7330 level that we are just testing as I write this, but I also have decent support at the 7320/7315 level. If the bulls can break above the 7330 then 7347 looks possible and a possible break higher towards 7362. Most of September has been fairly flat so we might not get to much of a massive move today. Famous last words! I have put the stop fairly close on the trade plan long, however, if you wanted to give it more breathing space then below yesterdays low at 7288 would do. (FTSE was annoying yesterday taking that 7290 stop out on our 7305 long.)
If the bears were to push it down today then as mentioned, yesterdays low is an initial support, 7290, with 7267 below that. If it did get there then a long is worth a go at this level.
We have been in a pretty tight range recently – narrowing to 7280 to 7330 so I am expecting it to break soon, and at the moment it looks like a break upwards. The 10 day channels on both Raff and Bianca are rising nicely, the market seems to have shaken off any immediate worries and the US is pulling things upwards on the Trump tax reforms.
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