28th September 2017
The bulls managed to defend the 7280 area again yesterday and we actually had a bit of an upbeat day with a close above the 7300 level. We have Mark Carney speaking today, at 09:15, so we might see some chop then on the FTSE 100. The SP rose strongly having held the 2495 support level, after the initial dip, and still needs to break 2515 to push higher. Generally the picture looks bullish across the board for the indices I watch. Cable continued to fall from that 136 level, now below 134, and also gold broke below 1300.
FTSE 100 Outlook and Prediction
Looks like not only will the US have a war with North Korea, but they will have a trade war with the UK as well, after the US slapped punitive tariffs on British-Built aircraft (by Bombardier)! So much for the UK being front of the queue for trade with the US with Brexit taking place.
Anyway, for today, it actually looks fairly upbeat if the 7298 support area holds. There is initial support on the 2 hour chart at 7312 so if we get an initial move down we might see a bounce from here. There is still resistance at the 7335 level that the bulls will need to overcome – maybe Carney will talk it up through that level this morning? Above that then I am watching the 7379/7385 level where we have the top of the 20 day Raff channel and what appears to be a key level for the bulls to break. If they do then we might see another 100 points added by early next week.
On the bearish side of the coin, if the 7311 and 7298 areas break then a trip down to 7260 looks possible, though a bounce here would make sense if the buy the dip crowd appear. Below this then 7210 is still a support area of note.
It will be interesting to hear what Carney is going to say in his speech but for today I am thinking more of a buy the dip plan.
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