7100 now support with 7235 resistance | US China possible trade deal | Bulls are back | Trading analysis

Markets rattled by trade again | SPX finally drops | 7240 7197 support | 7355 resistance

2nd November 2018

That was a nice hold of the 7075 level initially yesterday and saw the bulls push on to the 7140 resistance level steadily over the morning. “Red October” has been swiftly forgotten (as is usually the case, markets have a very short memory) as it looks like China and US are ready to negotiate on the trade war front.

Friday began in the green for Asian stocks, thanks to news the leaders of the world’s two largest economies talked, with U.S. President Donald Trump saying his Chinese counterpart wanted to make a deal to end an escalating trade war. Then the report that sent shares shooting up came out: Trump has asked U.S. officials to begin drafting potential agreement terms.

The MSCI Asia Pacific Index surged as much as 2.3 percent, heading for its biggest jump in more than two years. And as the week comes to an end, there’s no shortage of superlatives to describe this rally: best week since March 2016, first gain in six weeks and higher trading volume across the board.

Hong Kong shares led the surge on Friday, with the Hang Seng Index soaring as much as 4 percent. The Shanghai Composite Index gained for a fourth day, following this week’s hints from the nation’s leadership that additional stimulus measures may come soon.

U.S. stocks rose for a third day Thursday, continuing a torrid rebound from the October sell-off as investors greeted the latest batch of earnings optimistically amid signs of easing trade tension.


FTSE 100 Trading Signals, Forecast and Prediction

Its NFP (non farm payrolls) news out today at 12:30 so likely to see some movement then, especially on US markets. The forecast is 193k. We have gapped up a fair bit this morning following the US/China potential agreement news, and I am watching two levels for initial resistance – 7204 and 7234. I have gone for an initial drop down from the 7204 level towards the support level at 7123 where we might then see a bounce from.

7100 now support with 7235 resistance | US China possible trade deal | Bulls are back | Trading analysis
7100 now support with 7235 resistance | US China possible trade deal | Bulls are back | Trading analysis

Membership

If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.

Results

I keep a record of all the trades communicated to members via the morning email trade plan and those alerted live. See the results here.

What you get

  • Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
  • Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
  • Telegram Chat room and webinar group membership for discussion and realtime trade updates