11th September 2018
That was a decent rise from the 7266 support area yesterday however, it was a shame that the bulls couldn’t hold the price above the 7300 level. That was despite the news that the UK economy had grown at the fastest pace in almost a year between May and July, as construction output rebounded and a heatwave boosted retail sales and the services sector. The gold short at 1197 slowly moved down into profit and is now just sitting at the 1194 level. The pound held onto gains after EU chief Brexit negotiator Michel Barnier said a deal with the U.K. is “realistic” and “possible” within eight weeks.
Persistent trade frictions and turmoil in emerging-market currencies continue to mar the outlook for global equities. Investors are bracing for the next step in the U.S.-China trade dispute after the Trump administration signaled it’s ready to impose tariffs on even more goods imported into the U.S.
Meanwhile in Asia, a rout in technology stocks, emerging market contagion, currency weakness, and an economy under threat see Hong Kong on the brink of a bear market, as its lost nearly 20% since a January peak.
FTSE 100 Trading Signals, Forecast and Prediction
With yesterday’s rise off the 7260 area, the 2 hour chart has gone bullish and has support at the 7250 level. With a daily RSI at 24, and the fear/greed indicator just swinging back to “greed” after yesterday, I am thinking that we may well start to see a kick up. However we still have a turbulent back drop with the US/China tariffs, and the emerging market rout.
That said, buying the dip might soon be the right play and for the moment 7225 looks to be locking in as the low. It’s all up to the bulls now.
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