21st November 2017
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The FTSE stalled at the 7400 level again, and dipped a little, changing it from a bit of a bearish picture to one that is more optimistic. I mentioned Fridays low of 7356 being the key level the bulls had to defend and despite a print of 7350, they managed to gain control from the bears. After a bull Monday, we can sometimes get a bear Tuesday and with the Budget tomorrow and the US closed Thursday we may well see some caution today.
FTSE Outlook and Prediction
For today I am watching Fridays level of 7405 quite closely as if this holds as resistance then we should be on for a leg down towards 7350 again, and possibly a bit lower. We have the fib and S2 at the 7330 area so a dip to here makes sense, and we also have the 200ema on the daily chart at 7338.
Above the 7405 level then 7430 is R2 and a fib level and looks fairly key should the bulls push it above 7405. If the bulls were able to break above this then a rise towards the 7450 level is likely – and then we have daily moving average resistance there. Its all fairly flat really on the FTSE with nothing particularly clear.
This dip has probably trapped a few bulls with longs above 7500, while the bears don’t seem strong enough to push it much lower than the 7300 level at the moment. With the budget speech tomorrow and maybe a few wholesale changes to things like VAT and Income Tax, we may see some movement tomorrow.
So, cautiously bearish today, watching 7405 and 7430 resistance; 7350 and 7330 support.
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