20th February 2019
The FTSE 100 lagged on global markets, dragged down by banking giant HSBC and sterling’s hopeful rally ahead of Theresa May’s trip to Brussels. HSBC’s 4pc slide, its biggest one-day loss in two years, wiped 21 points off the FTSE 100, half of the index’s 40.30-point drop to 7,179.17. European stocks edged lower as investors turned cautious ahead of this week’s US-China trade talks.
Asian stocks traded somewhat indecisively Wednesday following the cautious gains seen on Wall St. ahead of upcoming risk events.
We have another 20 post dividend today so that may well help underpin a bit of bullishness. Was a bit early with the FTSE long yesterday as it dropped down to 7162 and then climbed back. Today I am thinking that we still get the rise, towards the 2 hour resistance at the 7225 area. If the FTSE bulls were to break above 7225 then the 7305 area is still worth watching and a likely bullish target.
Gold was a on a charge yesterday, climbing to a new short term high at 1347, a level not seen for a long time! It has since dropped back a little bit but certainly recovering well this year from its recent lows.
FTSE 100 Trading Signals, Forecast and Prediction
For today I am thinking that we have a bit of a dip and rise day. I am looking at support at the 7151 to 7159 level. If the bears were able to break below the 7150 level then the next support level to look for is 7130, a level that should in theory hold an initial test. I am still mindful of a possible retrace to the 25ema on the daily chart at 7055 for now, and if we do dip to that, expect a bit of a bounce here.
The bulls will be keen to break above the 2 hour resistance at 7224/7228 today as that keeps the chance of a rise towards the daily resistance at 7304 alive, and a likely upside target. As mentioned above we have a 20 point dividend being applied later so that may well help underpin the bulls today. The ASX200 had a bit of a dip and rise, and I think we may well see the same, especially if there is positive news on trade talks once again.
The price moved below the 200ema on the 30min chart yesterday which shows the bulls weakening and would suggest that a drop down to the 7055 area may be underway now. If the bears were to push lower than this and break 6990 it doesn’t bode well for the bulls and we will probably need to go full bear! For the moment, there is a chance that we push towards 7500 though. Cautiously bullish for the moment still.
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