7th December 2017
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Bit of a mixed bag yesterday as the markets recovered from their lows, but all three – Dax, S&P, FTSE – dipped below their key support levels for the day. Oil tumbled the most in two months, while the dollar strengthened amid a broad risk-off mood yesterday. For the S&P it was the fourth loss in a row, the longest slump since March. The FTSE managed a slow drift back to the 7370 resistance area, which is failed to break, while the Dax managed to limp past the 13000 level. Talking of 13000 levels, Bitcoin managed to break 13k also yesterday and is now above 14000 already!
FTSE Outlook and Prediction
For today I am thinking that the bulls might try and build on the bounce that we are in from the 7280 support level. However the 7375 resistance level is still in play, together with a fib level for today at 7386. We also dropped off 7370 yesterday so the bulls will be keen to push above this level, but can they make it stick? If they are able to and we break 7390 which is the top of the 10day Raff channel then the 7433 level is the next hurdle – the top of the 20 day Raff channel is here. With other markets being fairly lacklustre and a general risk off mood at the moment, it might just be another slow drift up.
On the flip side, there is support at the 7340 level from a few things as you can see on the list below, with 7320 support on the 2 hour below this. Worth a long here if it was to get that low this morning. Gold has dropped off again, failing to break the 1300 level so we may see a bit of a move into equities as a result (though they are not as correlated as they used to be).
Meanwhile the Brexit negotiations continue to be deadlocked, and without a deal. Mrs May’s own MPs warned her she could be toppled “within weeks” if she comes back from Brussels next week without an agreement that trade talks can begin.
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