24th November 2017
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With the US closed for Thanksgiving yesterday the FTSE 100 shook off early worries, bouncing from just above the 7370 support level to hit a session high at the 7420 resistance area. The short here didn’t really do much as it only dropped to 7410 before hovering back around 7420. A sudden weakness yesterday in Chinese equities didn’t create much of a ripple here, and they have recovered a bit today.
Global stocks are heading into the final weeks of 2017 at record highs as investors place their faith in economic growth and an earnings’ expansion. PMI data showed the euro-area economy picked up momentum in November and as Germany’s Social Democrat party was said to be open to talks with Chancellor Angela Merkel.
FTSE Outlook and Prediction
The bulls managed to defend just above the 7370 support level yesterday and if they can break 7430 today we should be on for a rise towards the recent high at 7460. There is a fib level and R2 just below this at 7455 though which may stall it just shy of that target. Asian equities traded with little in the way of firm direction today, so a slow drift up towards the bell with some profit taking at the end might be our play as well.
Support wise, I am looking at the 7405 and 7401 areas initially, but a break of this will lead to 7360 and the fib support level at 7355, with an outside chance of 7330. The day after Thanksgiving is usually bullish, so am leaning more towards a rise today. The ASX200 recovered from its early drop, and cable has dropped off the 133 resistance area – so we may well get a bullish helping hand from that.
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