16th October 2018
We got the slow steady rise yesterday, but from just above the 6950 support level to just shy of the 7050 resistance level. Cautiously bullish is probably the best way to describe it! For today we are nearing the 7050 resistance level which is still valid, with 7075 above that, where we have the 200ema on the 30min. After the bull Monday we may well see a bit of a dip back today towards the support at 7015. Yesterday gave us another daily candle with a long tail though so the bulls are certainly trying.
From Bloomberg – “One quantum of solace for bruised stock bulls: Some of the usual suspects behind last week’s rout may be done frightening markets. Equity long-short hedge funds are among the worst-performing categories this month, along with risk-parity investors and balanced mutual funds, according to JPMorgan Chase & Co. — a sign they helped fuel the market slump. With that exposure slashed amid the carnage, the big deleveraging could now be over, according to the bank’s strategists. Still, U.S. stocks were down Monday, while the dollar dropped as investors weighed a growing list of global concerns against a backdrop of strong economic growth.”
FTSE 100 Trading Signals, Forecast and Prediction
If the bulls were able to break above last nights high at 7045 then 7075 is looking fairly crucial. It is the first touch of the 200ema on the 30min chart since the sell off began at 7550, and as such is a crucial retrace point. If the bulls can break above this then it opens up a rise towards 7200 and the 25ema on the daily, currently at 7289 for the moment. Still thinking that a retrace of the fall to that moving average will then a further dip. Its possible that we get another test off the recent lows before climbing again at the end of the year, though a break of 7075 does confirm that we have seen the bears take it as low as they can for the moment.
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