5th September 2017
Was quite surprising how well the markets held up yesterday after the North Korea nuclear test over the weekend. The FTSE 100 had the merest of dips below the 7400 level but generally stayed between that and 7435 all day. Gold also maintained the gains from Sunday night, while the biggest mover was Bitcoin – down – after China pulled the rug from under it. The US is holding back on North Korea for the moment but urging the UN to do more. If it didn’t sell of yesterday then it would be surprising if it did today, but it is bear Tuesday after all.
FTSE 100 Outlook and Prediction
I am thinking a dip and rise today, maybe as low as the fib level at 7374, and just above S3 for today. The 2 hour chart is still bearish with the resistance at 7440, but does have a positive coral trend line at 7400 which held well yesterday. That coral line is at 7421 today so we are slightly below that as I am writing this and we do have a bearish 30min chart to start things off. If we do dip initially with a bear Tuesday pattern then there are a few supports of note, though the 7374 level looks pretty strong. I suspect that there will be a few shorters coming in on a break of 7395 today as well.
Generally I am thinking that we will see a rise towards 7460 either today or tomorrow, and possibly even push above 7500 later this week. The markets proved resilient yesterday, bullish almost, and shook off the NK news. The daily chart is still bullish, with support at 7402, and we have both rising 10 day Raff and Bianca channels.
I am thinking that the US will be buying it up later when they return from their holiday yesterday, mainly to show the world that NK wont faze their stock markets. The algos certainly did a good job of keeping the futures prices up yesterday,
So, looking for a bit of a V shaped day today and if the bulls can build on that consolidation yesterday – but they need to break 7435 initially to test 7460.
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