8th December 2017
Want to discuss things with other traders – please visit the forum here for todays discussion
The FTSE 100 bulls failed to break above the 7375 resistance level again yesterday, and in fact we had a slow drift down from that 7372 resistance level to just above 7300. Gold also had a sharp sell off – everyone probably selling gold to buy bitcoin, which rose to nearly $17,000 at one point.
We have NFP news today at 13:30 in the US, which traders will be watching for clues on the state of the US economy. With it also being a Friday, stay a bit cautious today. Theresa May is also doing a dash to Brussels to meet with the EU president this morning, so expect some volatility following that, especially on cable.
For the FTSE 100 today, I am watching the 7292 support level, and 7279 below that – if this support zone holds then the bulls should be fine and can bring the price back above 7300 – otherwise we are looking at a decline to 7200 and maybe the bottom of the 2017 range at 7100.
FTSE Outlook and Prediction
For today I am expecting a bit of a climb, certainly as we go towards NFP news at 13:30. The forecast is 195k. We have support to start with today at the S1 level at 7292, and the bulls will be keen to defend the 7300 area if the bears do try and break through. If 7292 breaks then there is a fib pivot at 7279, but below that then a drop down towards 7230 looks likely if the bears gain control.
If the bulls manage to defend that level then we should see a rise to the 7330 resistance area (there are a few indicators showing resistance in this area) and if they can break this then 7360 or higher. The 7377 area also poses a stumbling block for the bulls but a break of this area should lead us back above 7400.
For today I am thinking buy the dip at 7292 support level is a good play for a run up towards NFP. But stay cautious as its Friday, with NFP thrown in! Also more Brexit news following May’s visit to Brussels.
Membership
Want more detailed analysis for FTSE 100, DAX, Gold and S&P? Then please join our active members community.
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