27th November 2017
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The FTSE failed to match the bullish exuberance of the Dax and S&P on Friday, rising from a low of 7390 to hit a high during the session of 7420 in what was a very lacklustre performance. The daily chart is still bearish showing resistance at 7439 where we have a moving average, and the 2 hour at 7420. If the bulls can push on today for a bull Monday and break 7439 then the fib level at 7457 looks possible. Key support however sits at 7360, and a break below this opens up the possibility of 7330, and maybe 7300.
FTSE Outlook and Prediction
For today I am looking at a rise towards the 7439 level where we will once again hit the 25ema on the daily chart and the moving average that we dropped off from recently at 7450. If the bulls were able to push above this then 7457 is the next resistance area of note as we have a key fib level here. There is a case at the moment for shorting the rallies to target 7400, and possibly a drop down towards 7360 and possibly lower, but it all hinges on the 7460 level. If the bulls were able to push above this then we would likely rise above 7500 pretty easily, and probably see 7530 or higher. 7600 back in play then.
I have mentioned before that November is usually weak but can create a spring board for a stronger December, with the “Santa Rally” kicking in at some point, usually around the middle of December. We may well see that this year too, if the bulls can defend any dips down towards 7360. If that breaks then it looks like 7330 and possibly 7300 are in play. A break of the latter though isn’t good for the bulls and a strong December becomes a big ask.
For today however, we may well see a bull Monday, at least initially, with a rise from the 7400 level towards the 7440 level.
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