6th December 2017
The FTSE promptly fell from that 7375 level and has tested the support area mentioned yesterday at 7280 overnight, as Asian stocks fell. It will be the longest losing streak in two years for Asian stocks as the technology, mining, consumer and industrial sectors led declines.
Can the FTSE bulls defend the 7280 now? Below this then we are looking at 7230 and also the bottom of the 2017 range at 7100. Still looking like a sell the rallies play to start with in December.
FTSE Outlook and Prediction
For today it looks like shorting the early rise towards 7310 is the best play. If the Asia overnight weakness carries through into our session then a drop down through 7280 looks possible – with 7233 the next support area of note. The S&P has dropped off its recent tax bill highs and currently sitting at 2625, with the 2650 area looking like resistance for now. It is about to hit the bottom of the Raff 10 day channel at 2620 though, and if that rises from there it might well stop any FTSE weakness.
With the 7280 level holding overnight, the bulls will be keen to get the FTSE 100 back above 7300 first thing this morning, but the 2 hour chart is now bearish with resistance at the 7310 level. The 30min chart is also showing a few resistance levels at the 7306 to 7332 area, so I am thinking that a short in this general area is worth a go, certainly to test 7280 again, and probably lower.
If the bulls were able to push above the 7332 level today, then 7377 is resistance with 7394 above that, where we have the 10 day Raff channel top. With the daily coral trend line now bearish, showing resistance at 7472, the bears have the momentum at the moment. We are however going to be starting with the “Santa Rally” talk again soon though I think if we get it it will be later in December – during the week of the 18th if at all. I am watching the S&P to see if it can hold that 2616 support area.
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