22nd September 2017
Turned into a fairly flat day yesterday across the board as the markets digested the Fed meeting results from Wednesday night. Trump upped the pressure on Kim Jong Un’s regime with a fresh set of sanctions against individuals, firms, and financial institutions doing business with North Korea. People’s Bank of China has also ordered local banks to cut off business with the rogue state. In response, overnight Kim Jong Un has threatened to test a hydrogen bomb in the Pacific. That’s weighed on markets overnight as you would expect.
Theresa May is to deliver a speech on Friday afternoon in Florence, Italy to clarify her position on the terms of an exit from the EU and what the relationship between the two parties will look like after the divorce.
FTSE 100 Outlook and Prediction
It’s all kicking off yet again with North Korea which may well weigh on markets ahead of the weekend and we also have May’s speech today on the Brexit plan (or the current thinking anyway). For today I am expecting a bit of a dip initially and then a possible bounce around the support level at 7220 to 7225. If we do bounce there then we may climb as high at 7260.
However the picture does look quite weak at the moment with 2 hour resistance kicking in now at 7256. The bulls might struggle a bit to break above here, but if they do then we may well see a rise back to the resistance level at 7309.
It’s of course a freaky Friday so may well some funny antics, and also a dip down towards the close in case NK does do this hydrogen bomb test they are talking about.
So, watching 7256 for initial resistance with 7309 above that, and support at 7220. If the bears break below this then 7182 is the next major level to watch where we have the bottom of the 20 day Bianca channel.
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