28th November 2017
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That was a decent rise from Friday’s low at 7390 to the first resistance level I had mentioned at 7440. I did think it might have been a bit stronger yesterday to break through that and test the 7460 level but alas not, and the bears brought us back down to sub 7400. If they can’t recapture 7400 today and make it stick it looks like we will be testing the 7360 level soon. That is now twice we have dropped off the 25ema on the daily chart – if we test it a third time then we may see the bulls break through, though they need to break 7414 first, to reach the 7460 resistance area.
FTSE Outlook and Prediction
This morning I am expecting a dip down towards the support area at 7350/7360 and then a possible bounce back towards the 7400 level. The bulls will be keen to get the price back above 7400 asap really, with the aim of testing 7460+ this week. That was much stronger resistance at 7440 yesterday than I was expecting, so the bears are still holding (just slightly) the upper hand, with a bearish daily chart. The 2 hour chart is also now showing a red coral at 7414 – which is a downtrending signal. The bulls will need to break this resistance to gain some strength.
After the rise and dip yesterday we may well have a bit of a bear Tuesday today, and see a dip down. If the 7360 level is broken with conviction then the bears will likely pull this down towards 7300. I have gone for a trade plan long at 7352 as there are some decent supports just below the 7360 level as well as you can see from the list below, so if we overshoot slightly we can hopefully catch a bounce, if we get one.
We are nearly at the end of the month so might well see some buying come in for the possible stronger December, though that 7350/60 looks pivotal as to whether it starts sooner or later. The S&P stayed above 2600 for most of its session yesterday so is much stronger than the FTSE still, with the rise in cable and holding above the 133 level weighing the FTSE down.
Today we have the BoE publishing the annual stress tests alongside its Financial Stability Review looking at the health of U.K. banks.
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