1st September 2017
We ended up with a trending day on the FTSE 100 yesterday helped by a rise on oil of over 3% and also falling cable which is back below 130. Unfortunately it enabled the bulls to break the 7419 resistance after a small pause and drop there, and then they managed to take it up to the 7445 where it stalled. Overnight has only dipped down to 7420, and today will possibly see an initial rise as its the start of the new month and new institutional money comes in. That said, looking at the ASX200 it had a dip and rise day and we do sometimes mimic that action…
We also of course have NFP* news out at 1330 later today, with the forecast at 180k, previous was 209k. The past 15 have been positive and above expectations, so today is likely to be the same. Sometimes think it’s a case of under promise and over deliver with the forecasts!
FTSE 100 Outlook and Prediction
After yesterdays strong showing from the bulls I am expecting them to push on today as well. The key will be if the daily pivot at 7417 can hold as support as if this breaks then 7390 and then the 7350 area are the next levels of note. Possibly even as low as the 10 day Bianca at 7336. As mentioned above its the start of the month which usually sees a bit of a kick up as the new money for the month flows in, and we have a positive, bullish 2 hour chart for today as well. This is showing lower support at the 7377 level where we have a positive trend line.
If the bulls can break above the 7444 level which was yesterdays high then 7470 is the next fib level of note and also the 20d Raff channel – as such there might well be a stutter there so worth a speculative short. Bear in mind it is NFP Friday today so liable to be strange anyway, and with a new month thrown in as well!
I am going for the support level at 7417 holding initially this morning and buying the dips first thing is probably the most sensible play for today. This afternoon will of course depend on NFP but bear in mind the S&P is hitting the top of its 20 day Raff channel at the moment, so resistance at 2474 still.
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